Differences between 1099R Federal and State Distributions

We’ve seen a number of taxpayers with 1099Rs with different state/federal distributions (that is, box 2a is not the same as box 14).

Massachusetts tends to follow the Federal rules for taxability of distributions, so TaxSlayer will transfer what is in Box 2a of the 1099R to the MA return.  There may be some situations, however, when there is a valid reason why Box 2a and Box 14 are different.

If that is the case, you need to adjust the taxable amount after confirming with the taxpayer that there is a valid reason for the difference.

  • If Box 14 is GREATER than Box 2a, enter the difference as a POSITIVE number in the State Section > Income Subject to Tax > Exempt Pensions and Annuities.
  • If Box 14 is LESS than Box 2a, enter the difference as a NEGATIVE number in the State Section > Income Subject to Tax > Exempt Pensions and Annuities.

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