How do I enter 1099-R Massachusetts state retirement pension which is exempt from state taxes?

Forum|Forum|1 year ago
February 26, 2025
2 replies
0 views

My wife retired from teaching in Massachusetts in 2024 and started receiving pension payments. I got a 1099R from Mass Teachers Retirement and entered the income into the wages section of the federal gov't section of Turbo tax. There is no state tax on a teacher's pension.

No matter what I do, during the state tax review, I get "Form 1: Tax-Exempt Pension should not be entered directly on Form 1 for State Electronic Filing. You should enter the information on the Federal Return, For 1099-R and/or use the Pensions and Annuities Smart Worksheet to make any tax-exempt adjustments.

There's a scrollable Form 1 form in the "check this entry" window and that looks like you can edit it but you can't. I see in the Pensions and Annuities Smart Sheet my wife's pension payment total with a type of G, which is non taxable.

There are a number of posts in this forum from 2020 on and I've tried all the suggestions and nothing works. Help!

TurboTax Premier Online

BillM223

When you entered the 1099-R originally, immediately after you entered the numbers, did you see a screen that asked you where this pension was from?

This example is for a Keogh plan, but you can see the "Massachusetts State Teachers Retirement System" just above it.

Find this screen (in the 1099-R interview) and enter it there.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

ewatson24Author

The trick is that when you get to the error in the state review, you must null out the box that populates from the federal 1099R. It will default to the full distribution. The box must be null, not zero. This was reported a couple of years ago https://ttlc.intuit.com/community/retirement/discussion/ma-tax-exempt-pension/00/2463141

don24

I have tried everything and following turbo-tax advice closely and other suggestions, even though I had paid to e-file, I had to submit a hard copy. After all these years turbo-tax still an not get this particular item correct.

Shame!

don24

Unfortunately, you can't, there is a bug in their software. Don't waste your time trying to do something that Turbo Tax software won't allow. I filed my taxes on paper and sent them by surface mail. Got excepted and refund issued within two weeks. If you paid to e-file like I did, just write off the expense to bad luck with TT.