Question

Inherited Roth IRA taxed in MA but not CA or federal?

Forum|Forum|6 years ago
January 27, 2020
1 reply
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I received a distribution from an Inherited Roth IRA that is not taxed at the Federal level or in California, but according to TurboTax, the distribution IS taxed in Massachusetts (I moved and am filing in both states). Is this an error in TurboTax? How do I correct it?

TurboTax Deluxe Online

DMarkM1

Be sure you have entered the 1099-R information exactly as the form shows.

Then, part of the distribution could be taxable depending on whether the distribution as qualified or non-qualified. Here is a link that explains the rules for qualified distributions. .

Also, did you receive distributions while a resident of MA or CA? If in CA, then you can exclude the distribution amount from MA income in the state interview questions. The same is true if you received part of the distribution while in MA. Exclude what was received while in CA.

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