Roth IRA Distributions

Forum|Forum|1 year ago
February 12, 2025
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Why did TurboTax tax my Roth IRA distribution on my MA state return?

DavidD66

Massachussets uses the same rules that the IRS does to determine whether a dsitribution from a Roth IRA is taxable. If your Roth IRA was non-taxable for your federal tax return, it would be on your Massachussets state tax return as well. Please clarify what you are seeing that indicates your Roth distribution is being treated as taxable on your Massachussets tax return.

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SteveB97Author

DavidD66,

Thank You for responding to my inquiry. For clarity I will use simplified dollar amounts. I have $300 in Rollover IRA withdrawals (taxable), $200 in Roth IRA withdrawals (nontaxable) and $100 in QCD withdrawals (nontaxable).

Turbotax 2024 Form 1040-SR Line 4a is $600, and Line 4b is $300 with “QCD” typed in. I believe these are all correct.

Turbotax Massachusetts 2024 Form 1 line 9 is $500, which I believe to be incorrect, since it is taxing my $200 Roth withdrawal. MA Schedule X lines 2 and 7 are also $500 (Incorrect). MA Schedule INC has the correct 1099’s listed, including the Roth and its own 1099.

My question is, why has Turbotax filled in the correct amounts on 1040 and the incorrect amounts on the MA Form 1 and Schedule X?

Thank you again so much for your help.

Briarwood97

MAK70

There is a screen in the Massachusetts section titled Taxable IRA/Keogh Distributions where you have to enter the nontaxable amounts. It says Other Contributions Previously Taxed by Massachusetts.

TurboTax does not transfer the nontaxable amounts automatically from Line 4a. @SteveB97