Lines 4,5 and 7 all say "not less than zero", but that was dropped from the posted version.Do the math if you don't include it.Why are you counting 3k from this year as part of previously taxed contributions? This year's contribution hasn't yet been taxed...Thanks to both of you for responding. I apologize for not giving complete information.
I had contributed to a tIRA (non-deductible on both federal and MA) for a couple of years and then converted the whole account in 2022 to a Roth. The account had some gains but no roll-over from other sources. I paid both federal and MA taxes on the distribution in 2022 less the basis which was tracked in 8606 forms each year. In 2023, I did the conversion the "right" way so no gains to worry about.
To be specific but with made up numbers, the MA mini-worksheet
1c. Total IRA/Keogh plan distributions received during 2023: $3000
2. Total contributions previously taxed by MA $13000 ($10k prev and $3k this year)
3. Total distributions received in previous years $12000 ($2k of gains when I converted in 2022)
4. Subtract line 3 from line 2. $1000
5. Subtract line 4 from line 1c $2000
6. Qualified charitable distributions in line 1
7. Taxable amounts. Line 5 - line 6 $2000
Same $2000 as last year. I assume I'm doing something wrong, but I don't know what...
Disclaimer: I am not a resident of MA, but I recently looked at this as a move may be in my future.
Statistics: Posted by rbd789 — Sat Mar 16, 2024 7:34 pm — Replies 13 — Views 501