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Back door Roth Conversion added back as income on MA state

skyworks
Level 5

Hi,

Back door conversion done in 2021, 1099 R Code2 (taxable amount not determine).

I have 8606 form fill out correct on Federal none taxable.

But on MA state return added back as IRA/SEP taxable distribution.

Anyone knows how to get around on MA state return?

 

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1 Comment 1
qbteachmt
Level 15

"But on MA state return added back as IRA/SEP taxable distribution."

It's all about residency tax.

"Included in your Massachusetts gross income for the year paid:

  • Contributions you made to a traditional IRA plan. For federal purposes, you can claim either all or part of the contribution as a deduction on U.S. Form 1040 if certain criteria are met. However, Massachusetts does not allow a deduction for these contributions.
  • Distributions from an IRA account made to you. For Massachusetts purposes however, distributions made are excluded from gross income if these distributions equal your Massachusetts previously taxed contributions. If you're a Massachusetts resident but also a beneficiary of a non-Massachusetts IRA, the entire IRA distribution is taxable since no Massachusetts tax was ever paid on the contributed income."

https://www.mass.gov/service-details/view-non-government-pensions

Are you able to mark that this was MA taxed, to start with?

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