Question

Mississippi Early IRA taxes due

Forum|Forum|6 years ago
February 22, 2020
2 replies
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I took a distribution from my IRA before 59 1/2. I live in Mississippi where I believe all IRA distributions are state tax exempt. However, when the data from my 1099-R transfers to my state return, it calculates that I owe state taxes on the distribution. If I change the code on the 1099-R, it cancels the state tax owed but it calculates a huge refund on my federal return.

Kat11_2

Employee

Please do not change the code on your 1099-R. It must be entered exactly as it was issued.

I just reviewed the MS Resident Income Tax Return. Typically, income that is "exempt" from state taxes are entered just as that...an exemption from state taxes. All I could find on the MS form is on page 2 of the return, Line 51, where the INTEREST penalty on early withdrawal is "adjusted" from the MS state tax. I don't see anywhere that IRA distributions are exempt from MS state taxes.

Here is a link to the PDF of the 2019 MS return:

https://www.dor.ms.gov/Forms/80105198.pdf

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*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***

Kat11_2

Employee

@LeeSmitty I was able to get a screenshot of the MS resident return. I've starred the line that I'm referring to. See below.

*** I am NOT a tax expert. I am a seasoned TurboTax user, and volunteer to provide assistance to TT users. Nothing I post is to be considered TAX ADVICE; I bear no legal liability for responses.***