Terry D EA Posted February 17, 2017 Report Share Posted February 17, 2017 New client left MA July of 2016 and moved to NC. Two part year returns are due. Client has stated that Teachers' retirement is not taxable to MA. I need some clarification on this as well as to make the proper entries in Drake. Also, client stated that $200.00 of interest income earned from a bank in MA is exempt from MA taxes. Clarification and references please. Quote Link to comment Share on other sites More sharing options...
FDNY Posted February 17, 2017 Report Share Posted February 17, 2017 The pension if from the MA Teachers Retirement System is exempt from MA taxes. There's a worksheet for pensions on MA1 where you can indicate that. The interest can be indicated on the 1099 INT where there is a drop down box under the interest input to indicate MA source. Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 17, 2017 Report Share Posted February 17, 2017 FDNY has it right but I'll chime in as well. State pensions are taxed when earned - so in the working years, the state income if higher than the federal income on that W-2. And there is *always* a Mass warning that the "state income is higher, please check your entries" - so annoying. On the interest entry screen in Drake, there is a box at the bottom called state-specific information. Pick MA from the drop-down and enter the full state interest. $100 is exempt per filer per year - $100 for a single person, $200 for a couple. ONLY for banks chartered in Massachusetts. So not Bank of America, not Citizens, not Santander, but yes Salem Five or Middlesex Savings or any of a zillion other small banks and credit unions. Quote Link to comment Share on other sites More sharing options...
Terry D EA Posted February 18, 2017 Author Report Share Posted February 18, 2017 Thanks guys, the bank in mention is Canton something. I'll be sure to check the form entries real close. Catherine I may ask you some other questions if needed. Thanks again. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted February 18, 2017 Report Share Posted February 18, 2017 13 hours ago, Terry D said: Catherine I may ask you some other questions if needed. Thanks again. Any time! You know where to find me. Quote Link to comment Share on other sites More sharing options...
FDNY Posted February 18, 2017 Report Share Posted February 18, 2017 2 hours ago, Catherine said: Any time! You know where to find me. You're my MA Go To person too! Don't forget, I'm a Red Sox fan now. 1 Quote Link to comment Share on other sites More sharing options...
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