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Common questions about Massachusetts IRAs and pensions in ProConnect Tax

by Intuit Updated 8 months ago

Below, you'll find answers to frequently asked questions about Massachusetts pensions, IRAs, and Keogh plans:

The program uses the worksheet for line 2 of the MA Schedule X to figure the taxable IRA distribution amount.

To adjust the taxable amount:

  1. Go to Input Return Deductions Adjustments to Income.
  2. Scroll down to the Massachusetts IRA/Keogh section.
  3. Enter Traditional IRA/Keogh contributions previously taxed.
  4. Enter Roth IRA conversion contributions previously taxed or deferred.

For more information, see the MA Nonresident or Part-Year Resident Income Tax instructions.

The self-employed health insurance deduction is reporting the full federal amount, but the amount applicable to MA is less than the federal. How do you adjust it?

Per the Schedule 1-NR/PY instructions for the "Nonresident Deduction and Exemption Ratio": 

"Since nonresidents are only taxed on income from Massachusetts sources, the deductions and exemptions allowed to them are limited by the amount of this income. This happens in two ways. The deductions in line 15 and Schedule Y, lines 2, 4, 5, 7, 9 (certain amounts only; see instructions for Schedule Y, line 9), 13 and 17 must be matched to specific items of income taxed on Form 1-NR/PY."

So, the SE Health Insurance Deduction isn't prorated.  The SE health insurance premiums paid must be allocated between MA and the other states on the return when they're entered.  Do the following to match the SE health insurance deduction to the MA source income: 

  1. Go to Input Return Deductions Adjustments to Income.
  2. Select the Health Insurance tab.
  3. Input amounts in the appropriate SE Health Insurance input fields.
    • For example, Premiums not entered elsewhere (excluding long-term care)

The program is missing information:

  1. Go to Input Return Deductions Adjustments to Income.
  2. Scroll down to the Massachusetts IRA/Keogh section.
  3. Enter Roth IRA conversion contributions previously taxed or deferred.
ProConnect Tax

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