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March 21, 2025
Question

Massachusetts Non-Deductible IRA Basis for IRA distribution

  • March 21, 2025
  • 1 reply
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I just looked at my 2024 Massachusetts State tax that I filed at the same time as my Federal and see that TurboTax did not adjust my IRA Distribution to account for my lifetime of making non-tax deductible contributions to my IRAs. Massachusetts fully taxes all contributions to a Traditional IRA so you are allowed to deduct those contributions when you begin taking IRA distributions.  What, if anything, did I miss in the State tax EasyStep interview that missed this costly error?  Thanks.

    1 reply

    March 21, 2025

    There is a question "Taxable IRA/Keogh Distributions" where you enter the Other Contributions Previously Taxed by Massachusetts (see below).