MA Teacher's Pension on Form 1

[ruthc]

Teacher retired in 2016 from C of Mass – Mass Teachers Retirement System. Her 1099R reported the following:
Line 1: Gross Distribution: $22435
Line 2: Taxable Amt: $21901
Line 5: Employee Contributions/Designated Roth contributions or insurance premiums: $533
Distribution Code: 7
9b: Total employee contributions: $18131

My understanding is that the retirement amount is not taxable (and none shown on 1099R for MA).
The $21901 flowed to the MA Form 1 on line 4 as federal taxable pensions. The next line says “Less MA exempt or adjustment”. I believe I should be entering the $21901 which I did. I don’t think I have to worry about any of the other amounts on the 1099R. Or do I? I want to make sure I am adjusting the federal taxable amount on Form 1 properly. Can anyone shed some light on this for me? Thanks

[taxmom34]

Mass does not tax their teachers on their retirement, so, your software should not have transferred any amount from federal reporting.

[ruthc]

I thought so.

That is what I thought too. However, for some reason it did transfer that amount even though I did not enter anything for the state on the 1099R.

[ATSMAN]

For MA State income tax purpose any pension received from the State, City, Municipality or Mass Teachers Ret. System is not taxed.

In your tax software code the pension type (1099-R) as State if you can and see if Form 1 shows no taxable pension for that. If that does not work put a 0 or override it in your software.

My software does it correctly once I code the 1099-R as State Pension.

[ruthc]

I use TaxAct. On the MA Form 1, Line 4a "federal taxable distributions and annuities") pulls the federal taxable pension income amount which is correct. The MA instructions say "If your pension is exempt, enter "0" on line 4b (which states "less MA exempt or adjustment") and note the source on the dotted line to the left". There is no "dotted line to the left" to make any notes. I am still confused. I have gone through the e-file test to see if the return would be rejected by TaxAct before e-filing and it looks fine by entering the "0" as the adjustment. But I am unable to enter any notes on it.

[ruthc]

Where to code pension type as "State"

ATSMAN

I don't see where I can code the pension type as "State". Where is it located in your software? Does it show on the 1099R when you enter your 1099R info?

[Lion]

Call your tech support. You pay for tech support in your software cost.

[ATSMAN]

ATSMAN

I don't see where I can code the pension type as "State". Where is it located in your software? Does it show on the 1099R when you enter your 1099R info?

I use Drake and on the 1099-R screen at the top there is a field called Pension Type and I can code it as State, Federal etc.

What software do you use. Check the input screen for 1099-R, there must be a field. Previously I have used ATX, Taxworks, Taxwise and I believe all of have that capability.

[TAXNJ]

If having a problem with the software try doing it manually and you will find the answer.

[ruthc]

Found the answer

I have since found out from someone that uses TaxAct that if the way I filled out the Form 1 for MA is the way to do it. The person who told me also uses TaxAct and has done it for years the same way as I mentioned. Thanks for everyone's input.