MA Covid IRA distribution inclusion

[matt1]

I have a TP in MA who took a Covid IRA distribution.

1. The Federal form correctly reports the income as 1/3rd.
2. The MA form reports it as 100% inclusion.
3. The MA guidance is that it should match the Federal.

When I amend 2020 to repay the distribution, I would amend to remove 1/3rd of the IRA for Federal. If I do that, then 2/3rds of MA will remain in the return for 2020.

If I amend to remove 100% of the distribution from Fed/MA then that is incorrect.

I need the MA distribution in 2020 to be 1/3rd. If I just 'override it' then it wouldn't be correct, and I'd have to 'override' 2021 and possibly 2022, neither of which would have the Covid IRA distribution exclusion for penalty interest.

Questions:

1. Am I taking crazy pills in thinking that MA should be on 1/3rd and PTO just hasn't recognized this yet?

2. Am I just entering the distribution for MA incorrectly?

3. If not, where can I see a list of dates when PTO will be updated to report this correctly?

[qbteachmt]

It's amazing what you find when you google things:

https://www.mass.gov/technical-information-release/tir-20-9-massachusetts-tax-implications-of-select...

[matt1]

 I don't understand your reply, please could you expound on how that answers my question?

[qbteachmt]

"please could you expound"

You brought up a bunch of mixed things. Did you use the link to read that info?

"TIR 20-9: Massachusetts Tax Implications of Selected Provisions of the Federal CARES Act"

The MA conformity is not complete. You have to read the instructions for each thing.

"Massachusetts gross income is federal gross income with certain modifications not relevant here.[12] Therefore, coronavirus-related distributions will be included in Massachusetts gross income at the same time and in the same amounts as they are included in federal gross income. The exemption from the additional 10% tax under Code § 72(t) has no practical Massachusetts tax impact. Although Massachusetts conforms to the Code as currently in effect with respect to section 72, there is no Massachusetts analog to the Code § 72(t) penalty."

Those are two different things you brought up.

You also mention amending 2020, 2021 and 2022: "If I just 'override it' then it wouldn't be correct, and I'd have to 'override' 2021 and possibly 2022, neither of which would have the Covid IRA distribution exclusion for penalty interest."

A penalty would only apply for the year of the Distribution, not along with spreading of the taxable income to report, anyway. Again, different provisions. Even if the penalty applied, the Feds don't spread a penalty. And the Feds allow for that three-year spread; the taxpayer can opt to include it all in the first year. MA will follow what is reported for Fed purposes, based on that link.

"If not, where can I see a list of dates when PTO will be updated to report this correctly?"

It might not be current, of course:

https://proconnect.intuit.com/tax-online/forms-finder/

Bookmark that.

[matt1]

I don't think you understand the question, so I will try to rephrase it:

Facts
1. MA (including the link you provided) states that MA will follow Fed (IE including the same AGI, IE the same 1/3rd of the distribution).
2. PTO doesn't reflect that, it does 1/3rd Fed and 100% MA because it calculates not from fed gross income in PTO, but rather via Sch XY.

Question

Why isn't PTO reflecting MA as it should?

Bonus Question

When will it?

The forms think you said to bookmark too isn't useful as it doesn't show anything other than when PTO updates 2020 from 2019, not when it updates 2020 to the latest provisions, for example, it mentions nothing about APTC recapture on the 1040. Also, it is linked from the PTO dashboard, so you don't need to bookmark it because it is one of the several quite useless links they provide for us by default.

[qbteachmt]

"I don't think you understand the question"

You asked a Bunch of Stuff. There are a bunch of resources that address this stuff. It's not just one answer.

Let's start here:

"as it doesn't show anything other than when PTO updates 2020 from 2019,"

At the top part of that first page, they have the three steps to follow for how to use that function. If you follow them, you see "3. Sort, scroll, or search for your desired form"

Did you click in the bottom part on MA? Then, Individual Module 1040. Then see the list of Forms and dates, such as "Sch CRS
Final form without watermark was released on February 04, 2021."

Here is the Help Article for the 1099-R: https://proconnect.intuit.com/community/individual/help/entering-form-1099-r-in-an-individual-return...

I googled and found that for you.

Here's the link inside that article: https://proconnect.intuit.com/community/form-1099-r/help/how-to-enter-coronavirus-related-retirement...

"Bonus Question

When will it?"

This is a peer community; not Customer support or Tech Support.

"for example, it mentions nothing about APTC recapture on the 1040"

That's a new question. That link I gave shows 8962 and 1040 without future scheduled updates. Are you following the topics in this community, such as:

https://proconnect.intuit.com/community/lacerte-tax-discussions/discussion/marketplace-insurance/00/...

https://proconnect.intuit.com/community/tax-talk/discussion/02/213

https://proconnect.intuit.com/community/tax-talk/discussion/how-do-we-eliminate-the-repayment-of-the...

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/2020-aptc-repayment/00/...

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/premium-tax-credit-new-...

"I would not expect APTC repayment to be updated today. Intuit generally programs based on form instructions. The IRS released instructions last Friday (3/12/21) regarding how to report excluded unemployment income but they have not released instructions on how to report APTC repayment limitations."

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/2020-aptc-repayment/00/...

"Also, it is linked from the PTO dashboard, so you don't need to bookmark it because it is one of the several quite useless links they provide for us by default."

Useless, or underused?

Because my research always finds these types of resources. Including google:

site:https://proconnect.intuit.com/community/ aptc repayment

Sometimes, you won't like the answer, of course.

[matt1]

I would be fine if the answer was 'IDK' but when you say 'oh look what google can do!' it's a waste of time, when really you don't know the answer. 

If anyone does know the answer to the MA issue feel free to let me know here.

[qbteachmt]

"if the answer was 'IDK' "

When you put 4 or more questions in one topic, and even add to the topic with more questions, then you get the answers to those questions. There is no IDK; why would anyone bother to reply they don't even know what to reply with? I gave you lots of resources and answers.

But I warned you that you might not like the answers.

Otherwise, you are Welcome; glad to help.

[matt1]

It wasn't any help, you just linked to something that confirmed the basis of my question, and the thread is a waste of time. I'm not sure how to block people on here, but if you could just not reply to any other questions I post that would be helpful.

[qbteachmt]

Sorry, I don't work for you, so you don't get to control me. However, if you go back to read this topic, you got answers, and you got resources to follow, because some answers are not yet available.

And this is not Private. Your question(s) here might help another.

So, thanks for being part of the peer community. That's one way to play nicely on the internet.

Feel free to stay around and help others, too.