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Depends on the state and the reason the state doesn't tax it.
If you provide some details maybe one of the PTO users can help.
Ex-AllStar
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Alabama does not tax military retirement or Alabama retirees retirement. They are taxable on the federal. Turbo tax has a code from what I’m told but even entering 0’s does not work on pro series.
There has to be a way. We have a lot of this in our state. I’m missing something
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Have you figured out how to enter this information? I am having the same issue with indicating a CA pension is not taxable in AL - the pension plan is listed on the Alabama Rev. Dept list of non-taxable plans so there must be a way to indicate it is non-taxable in AL
Thanks so much if you have found the solution!
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On Pro Series there is a "Pen Excl Worksheet" The second column labeled # is what I checked to exclude a government pension.
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I believe this where you learn one of real oddities of ProConnect Tax (and Lacerte). How do you enter ZERO (0). You enter NEGATIVE ONE (-1). In this software ZERO (0) really is nothing, that is - it is totally ignored.
Scroll down in the details of the pension input and find box (17) and go to the next box for State taxable amount, in different. Enter -1
I would not find a specific check box for an indicator that it is military or in state pension.
If there is a specific line in the return that would show, this you can Check Return, find the form or line and click on it to get to the input.
I DO NOT DO AL TAX RETURNS, so this is a best guess
Here's wishing you many Happy Returns
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Normally, if there's special treatment at the state level, you'll find a checkbox or toggle on one of the following:
- Input screen where you enter the retirement income or on that screen's state tab;
- Under State & Local > Modifications > AL Modifications
Still an AllStar
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Had a quick look. It turns out that Intuit didn't program any toggle for AL, unlike some other states.
If it is of those that are eligible for exemption, you will just override the state taxable amount as @George4Tacks suggested.
This can be done either:
- Under Income > Pensions, IRAs (1099-R), on the line State taxable amount, if different; or
- Under State & Local > Income > AL Income, on the line Alabama taxable pensions (Form 40, line 5b) [Override]
Still an AllStar