Question

Alabama tax exempt teacher retirement is being taxed on Turbo tax

Forum|Forum|1 year ago
March 3, 2025
1 reply
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If you indicate that it is tax exempt teacher retirement when you enter your 1099-R, TurboTax will report it properly on your Alabama tax return.

A

ahedge28Author

No it doesn’t. Turbo tax has had this bug in software for years. I keep reporting it and it is not fixed. I answered the question on the state return about income taxes federally taxed but exempt from state and had to override the space to enter it. It did not change me state tax due. It is taxing me on $50k that I should not be taxed on. It also is not transferring the tax exemption on vehicle tags to my state return. I am using premier. I would change to another tax preparation program but TurboTax has all my returns for several years and I like the transfer of information feature.

B

BillM223

I never get that question in the State interview nor can I find it in a search

Petra2

Is it possible that you are not a resident of Alabama? And did you indicate your state of residence in My Info/Personal Info BEFORE you entered the 1099-R? Is it possible that the 1099-R form had the IRA box checked by mistake?

@Petra2

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