Incorrect assignment of 1099R retirement

Forum|Forum|4 years ago
February 27, 2022
2 replies
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Turbo Tax took the info I downloaded from my Massachusetts Teachers Retirement Pension 1099R and put it into line 4b as an IRA distribution, instead of on line 5b as a pension which it has done for the past 10 years. It doesn't changes the Federal taxes I have to pay, BUT it dramatically changes the refund I'm SUPPOSED to get from Massachusetts. Massachusetts does NOT tax Teacher's retirement pensions, but because Turbo Tax puts in on Federal as a IRA it IS being taxed on my state return! A previous suggestion was, "Did you accidentally check the 'This is an IRA' box" I have gone back over the return several times but don't see ANY such box. How can the pension monies be taken OUT of 4b and correctly moved to 5b?

AnnetteB6

The box to check that indicates the distribution is from an IRA is on the Form 1099-R input screen. It is right after you enter the information from box 7 for the distribution code shown on your 1099-R.

Use these steps to go back to the Form 1099-R section of your return and edit that Form 1099-R to see if the box was checked in error:

On the top row of the TurboTax online screen, click on Search (or for CD/downloaded TurboTax locate the search box in the upper right corner)
This opens a box where you can type in “1099-R” and click the magnifying glass (or for CD/downloaded TurboTax, click Find)
The search results will give you an option to “Jump to 1099-R”
Click on the blue “Jump to 1099-R” link

If the problem persists, try deleting and re-entering the Form 1099-R.

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rodyank57Author

Tried 3 times to reset, but it STILL puts the pension as an IRA, meaning it dumps my Teacher's pension onto line 4b instead of 5b! It then does the same on my Massachusetts' tax return and makes that money TAXABLE when Massachusetts does NOT tax it's Teacher's pension funds! This is VERY frustrating and annoying. This was NEVER a problem in year's past!

PattiF

from RaifH

When you input your pension into the federal area of the return, did you indicate that it was from a tax-exempt source for the state of Massachusetts? To do this:

Verify your 1099-R entry under Federal > Wages & Income > Retirement Plans and Social Security > IRA, 401 (k), Pension Plan Withdrawals (1099-R)
If this is a tax-exempt pension in the state of Massachusetts, it should fall under one of the categories of Qualified government retirement distributions listed on the Where is your distribution from? screen.
Continue through the remaining 1099-R screens.

If you do it this way, the system should automatically exempt it on the state return and should clear the error you are encountering. If you entered everything correctly the first time, you may want to try to delete it and re-enter the information manually.

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