Solved: Client retired from CA in 2018. They are a current resident of MS. MS doesn't tax retirement. 1099-R has code 2. Is this considered to be taxable income?

j3fs · ‎03-24-2021

I checked "Yes" on Form 80-107 to not include as income but it is still being taxed. How do I override?

Just-Lisa-Now- · ‎03-24-2021

Code 2 is an early withdrawal.
MS taxes early withdrawals.

They may want to contact the issuer for a corrected copy if its not really an early withdrawal.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

View solution in original post

Just-Lisa-Now- · ‎03-24-2021

Code 2 is an early withdrawal.
MS taxes early withdrawals.

They may want to contact the issuer for a corrected copy if its not really an early withdrawal.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

j3fs · ‎03-24-2021

Thank you for the quick response Lisa. Greatly appreciate it. I'm in agreement.

Client retired from CA in 2018. They are a current resident of MS. MS doesn't tax retirement. 1099-R has code 2. Is this considered to be taxable income?