TAXABLE IRA DISTRIBUTION
Can someone please help me answer this tax question below and how to apply it, if necessary? My taxes were withheld from my IRA account in 2025. Thanks!
"The potential Massachusetts taxable amount of IRA distributions from your federal return is $2,210. From this amount, subtract any IRA contributions that haven't already been used to reduce any prior year IRA distributions. This reduced amount is the taxable Massachusetts IRA distribution you need to enter below."
Comments
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Hi donnieboston,
Massachusetts has different rules than the federal government for taxing IRA distributions. The state allows you to subtract certain IRA contributions from the taxable amount—specifically, any contributions you made with after-tax dollars that weren't deductible on your Massachusetts return, and that you haven't already used to reduce prior year distributions.
Here's how to figure out what to enter:
1. Start with the $2,210 potential Massachusetts taxable amount
2. Identify any after-tax IRA contributions you've made that haven't yet been used to offset prior distributions
3. Subtract that amount from $2,210
4. The result is your Massachusetts taxable IRA distribution
If all your IRA contributions were deductible for both federal and Massachusetts purposes over the years, you likely don't have anything to subtract, and your taxable amount would remain at $2,210.
Regarding the withholding from your IRA account—that doesn't change the taxable amount you need to report. The withholding simply means some tax has already been paid on your behalf, and it'll be credited toward your total tax liability when you file your return.0 -
Hi Austyn! Thanks for answering my question.
I need to ask you on your #2 assumption…. Where do I go to find that dollar amount to identify any after-tax IRA contributions I've made that haven't yet been used to offset prior distributions? I looked it up on google and said form 5498.?
Also, I've had all my taxes withheld ever since I began taking from my IRA which was in August 2025.
Thanks and I will wait for your answer…
Sincerely,
Donnie
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Massachusetts is asking you to calculate your taxable IRA distribution for state purposes, which can differ from your federal amount.
In most cases, if you've only made deductible IRA contributions over the years, your entire IRA distribution is taxable, so you would enter the full $2,210. However, if you made non-deductible contributions to your IRA in the past and haven't already used them to reduce previous distributions on Massachusetts returns, you can subtract that unused basis amount.
Your after-tax contributions to an IRA are often referred to as non-deductible contributions, and tracking them is important so you don’t pay tax twice when you withdraw the money.
If you made non-deductible contributions to a Traditional IRA, you should have filed Form 8606 with your tax return for each year you made them.
You can check your prior tax returns for this form to see your cumulative basis. If you don't have this Form attached to your prior year returns, it is likely that your contributions were deductible.
Your IRA custodian (bank, brokerage, or financial institution) should also send annual statements showing contributions. This will likely not distinguish between deductible and non-deductible, but you can use this information to locate the tax returns for the years you contributed.
The fact that taxes were withheld from your IRA in 2025 doesn't change this calculation. This simply means you had withholding taken out, which will show as a credit toward any tax you owe.0 -
Hi JanaA. Thank you for answering my question. So I would just apply the full amount then, and that's it. It was only for 6 months last year I began collecting from my IRA…
"if you made non-deductible contributions to your IRA in the past and haven't already used them to reduce previous distributions on Massachusetts returns, you can subtract that unused basis amount."
So in the above sentence you wrote in quotes, Where do I find this exact information so I can deduct from the full amount $2210.00, if any?
I will wait for your answer, thanks!
Donnie
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Hello donnieboston:
To determine whether you took a deduction for prior year IRA contributions, take a look at your Schedule 1 to your Form 1040. For tax years 2024, 2023, 2022, and 2021, any IRA deduction that you took will be reported on Schedule 1, Part II, line 20. Any such IRA deduction for these years will also be reported on your Form 1040, line 10.
For tax years 2020, and 2019, any deduction you took for an IRA contribution will be reported on Schedule 1, Part II, line 19. For 2020, any IRA deduction will also be reported on your Form 1040, line 10a, and for 2019, line 8a of the Form 1040.
If your IRA contributions were effected prior to 2019, let us know in what tax years you contributed to your IRA. Assuming you can provide such information, we will have a better understanding of which tax years we should research, and whether any IRA contributions were also deducted on your MA tax returns.0 -
Hi GeorgeM
Thanks so much. I now got a better understanding where to find the info now that you posted it. The only time I began deducting from my IRA was last year (2025) in August… So 5 months, last year totaling $2,210 as reported by my tax form. But I will check prior years I guess and get back to you. I do have a 5498 tax form back in 2024 that shows I made a rollover contribution from my 403b into my IRA for about $32,000. Would I include this, or how would I apply it if I have to???
But let me get back to and let me check my other tax forms going back to 2019. I'm in the midst of a blizzard outside where I have to keep shoveling to keep up with all the snow so I can get my car out…. Thanks again… !!
DonnieBoston
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Hi GeorgeM.
Here's my second response to you…
I followed your instructions and went back to my 2019 tax forms. None of my tax forms say Schedule 1 on them just 1040 tax forms…. Like I said above, I only began deductions from my IRA last August in 2025 totaling $2210. This is what the Tax free software sent me for last year…. 2025
Also, I only have access to my recent taxes back until 2019. Nothing further back. And again I do have that tax form 5498 for 2024 that shows I rolled over $32,000 into my IRA after I retired. The required minimum distribution for 2025 doesn't show anything - if that means anything… So since my research didn't show anything, what dollar amount would I enter in the "What is my taxable Massachusetts IRA distribution" box? Would you be able to answer this for me now since I checked everything?
I will wait for you to get back to me…
Sincerely,
DonnieBoston
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Hi donnieboston,
The 5498 showing your rollover will not assist you in figuring out your taxable IRA distribution for MA. What you need to know is what contributions over the years were taxed or not taxed for MA purposes. Generally, if you have lived in MA while contributing to an IRA, your contributions were not a deduction but would have been included in taxable income. Only your earnings would be taxable when distributed.
Your question is very specific and requires a support agent to review your account and returns. Since the moderators in the community are unable to view your account, we won't be able give you specific information. I recommend that you sign into your account and contact Customer Support.0 -
Hi MatthewD
Thanks for responding to my tax question.
If I can't find an answer on how to do this, I will just enter the full amount $2210.00… If it is too much, then they will send me a refund. I have simply had it with this state, and soon I will be living in a state that has no income tax. I guess having my taxes withheld, is not good enough for them. But, again, thank you for your input. Well appreciated!
Sincerely,
Donnie Boston…
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I just applied the full amount $2210.00 It is only a $21.00 difference more I owe, so I will claim the full amount and avoid the massive headache. Like I said, if there is money I can subtract from it, let them send me a refund.
Sincerely,
DonnieBoston
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