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1040 States

Retirement State Use Codes

If you're processing a state return with a distribution from a retirement plan, enter the state postal code in the
State
 field on the federal
1099R
 screen. Some states tax pensions and IRAs differently from the federal government. Use the
State use
 field on the federal
1099R
 screen (and, in a few cases, the
RR tier 2 benefits
 field on the 1099R screen and the
Averaging method
 field on the federal
1099R-2
 screen) to identify distributions that are handled differently for state purposes.
The table below lists codes that are available for each state. UltraTax CS only displays the codes that apply to the state you entered in the
State
 field on the federal
1099R
 screen.
State
Code
Description
Alabama
2
Use to indicate an IRA distribution that is not fully taxable. Pension income with this code transfers to the Alabama pension taxability worksheet. See the AL1099R screen help topic for more information.
Alabama
17
Use to indicate a Keogh distribution that is not fully taxable. Pension income with this code transfers to the Alabama pension taxability worksheet.
Alabama
25
Use to indicate a distribution that your client began receiving after 12/31/86 in which there was a cost/basis. Pension income with this code transfers to Post 12/31/86 sections of the AL pension taxability worksheets.
Alabama
26
Use to indicate a distribution that your client began receiving before 1/1/87 in which there was unrecovered cost. Pension income with this code transfers to the Pre 01/01/87 section of the AL pension taxability worksheets.
Alabama
40
Use to indicate a section 401(k) distribution that is not fully taxable. Pension income with this code transfers to the Alabama pension taxability worksheet.
Alabama
41
Use to indicate a section 403(b) distribution that is not fully taxable. Pension income with this code transfers to the Alabama pension taxability worksheet.
Alabama
50
Use to indicate an SEP distribution that is not fully taxable. Pension income with this code transfers to the Alabama pension taxability worksheet.
Alabama
75
Use to indicate distributions that are not taxable for Alabama. Pension income with this code does not appear on the Alabama Form 40.
Arizona
75
Use to indicate U.S. government, Arizona state, or local government pensions. Pension income qualifies for Arizona exclusion (up to $2,500).
Arkansas
10
Use to indicate IRAs and fully taxable annuities. However, do not use this code if code
8
 is selected in the
Distribution code
 field (Screen 1099R, box 7).
Arkansas
40
Use to indicate employer pensions and qualified IRAs.
California
33
Use to indicate qualifying nontaxable sick pay.
Colorado
22
Use to indicate an early (but not premature) annuity or pension distribution qualifies for exclusion. When using this code, the distribution is used on the Colorado Pension-Annuity Subtraction Worksheet, line d, federal taxable pension or annuities line. The distribution code entered in the federal 1099R screen, box 7 is ignored if
1
 or
2
 is used.
Colorado
23
Use to indicate an early (but not premature) IRA distribution qualifies for exclusion. When using this code, the distribution is used on the Colorado Pension-Annuity Subtraction Worksheet, line f, federal qualified IRA distributions line. The distribution code entered in the federal 1099R screen, box 7 is ignored if
1
 or
2
 is used.
Connecticut
24
Use to indicate military retirement and automatically calculate an exclusion (deduction) for Connecticut.
Connecticut
45
Use to indicate State Teacher's Retirement.
Delaware
35
Use to indicate a qualifying retirement plan.
District of Columbia
72
Use when a taxpayer under the age of 65 has notified the District of Columbia Office of Tax and Revenue that disability income should be treated as pension income. Box 7 must equal
3
 and the
Pre-retirement age disability
 field must contain
X
. Any disability income using this state code is not included in the total amount of disability payments received in the current year on Form D-2440.
Georgia
45
Use to indicate state teacher's retirement previously taxed.
Georgia
46
Use to indicate retirement withdrawal attributable to law difference 1981-86.
Hawaii
35
Use to indicate qualifying retirement plan.
Idaho
35
Use to indicate qualifying retirement plan.
Illinois
72
Use to indicate retirement benefits that do not qualify for the retirement subtraction. The full amount is included in Illinois taxable income.
Indiana
24
Use to indicate military pension. The pension income must be reflected in federal AGI to take the deduction. The deduction is allowed only for those taxpayers who were at least 60 years old by the end of the tax year.
Indiana
60
Qualifies for Civil Service Annuity deduction on Schedule 2 or Schedule C if the age restriction is met.
Indiana
66
Qualifies for Civil Service Annuity deduction on Schedule 2 or Schedule C regardless of age under the rules for deceased spouse.
Iowa
1
Use when the Iowa Public Employees Retirement System (IPERS) amount is different than the federal amount. A state or local government employee who retired after December 31, 1994 may have taxable pensions and annuities on the Iowa return that are different than on the federal return. In these cases, see Form 1099-R issued by IPERS for the taxable amount. Enter the amount shown in box 12 on Form IPERS 1099.
Iowa
24
Use to indicate qualifying military pension and military survivor benefits. This amount will not be included on Form IA-1040.
Kansas
12
Use to indicate federal retirement benefits. UltraTax CS automatically calculates the Kansas subtraction for federal retirement benefits.
Kansas
75
Use to indicate pension adjustment. UltraTax CS automatically calculates the Kansas subtraction for Kansas exempt pension plans.
Kentucky
75
Use to indicate pension adjustment.
Louisiana
12
Use to indicate federal retirement.
Louisiana
42
Use to indicate state employee retirement.
Louisiana
45
Use to indicate state teacher's retirement.
Louisiana
99
Use to indicate other exempt retirement.
Maine
1
Use to indicate taxed MSRS pick-up contributions in conjunction with the
State taxable amount if
 different field (Box 12). You must also enter
ME
 in the
State
 field. The difference between the federal
Taxable amount
 field (Box 2a) and Box 12 is used to complete the Maine Schedule 1 subtraction for contributions previously taxed.
Maine
24
Use to indicate military retirement.
Maine
34
Use to indicate military survivor annuity.
Maine
72
Use to indicate retirement benefits not qualified for the pension income deduction.
Maine
74
Use to indicate military retirement received by licensed dentist who qualifies for full pension deduction. Any amount of this pension not included in pension deduction will be deducted on the Schedule 1, other deductions line.
Maryland
15
Use to indicate firefighter's retirement. Only applies to pension and disability payments for job-related injuries or disabilities.
Maryland
24
Use to indicate military retirement.
Maryland
30
Use to indicate police retirement. Only applies to pension and disability payments for job-related injuries or disabilities.
Maryland
32
Use to indicate Keogh or deferred compensation plan. These distributions are not eligible for the Maryland pension exclusion.
Massachusetts
1
Use to indicate IRA distributions.
Massachusetts
10
Use to indicate an IRA distribution not subject to recovery of contributions. See 1040-MA user documentation for more information.
Massachusetts
16
Use to indicate Keogh distributions.
Massachusetts
69
Use to indicate nontaxable U.S., state, and local government distributions.
Massachusetts
76
Use to indicate pension income from another state or political subdivision.
Michigan
Blank
Not eligible for subtraction, includes distributions from Section 457 and Section 401k Plans. (Default.)
Michigan
24
Use to indicate a Military Retirement distribution to be reported as a subtraction on Schedule 1, line 9.
Michigan
78
Use to indicate a private retirement distribution that qualifies for the limited subtraction on Form MI-1040.
Michigan
81
Use to indicate a public retirement distribution that qualifies for the unlimited subtraction on Form MI-1040.
Michigan
99
Use to indicate a Michigan Cities only retirement subtraction.
Minnesota
24
Use to indicate military retirement pension or other military retirement pay to be reported as a subtraction on Schedule M1M.
Mississippi
75
Use to indicate pension adjustment.
Missouri
78
Use to indicate private retirement benefits that qualify for deduction.
Missouri
81
Use to indicate public retirement benefits that qualify for deduction.
Missouri
24
Use to indicate military retirement.
Montana
35
Use to indicate the pension amounts that are excludable, subject to maximum limit.
New Jersey
24
Use to indicate nontaxable distribution / retirement.
New Jersey
28
Use to indicate non-military pension not taxable.
New York
12
Use to indicate federal retirement.
New York
15
Use to indicate firefighter's retirement.
New York
21
Use to indicate local government retirement.
New York
24
Use to indicate military retirement.
New York
29
Does not qualify for exclusion.
New York
42
Use to indicate state employee's retirement.
New York
45
Use to indicate state teacher's retirement.
New York
51
Use to indicate Long Island Railroad or Manhattan & Bronx Surface Transit Authority retirement.
North Carolina
81
To receive a deduction for the amount of retirement benefits received by vested employees of the state or local government of North Carolina, or federal government retirees, use the federal 1099R screen in the Retirement folder, and enter
NC
 in the
State
 fieldv and code
81
 in the
State use
 field.
North Dakota
N/A
Does not require a state use code.
Ohio
9
Use to indicate that the amount is not eligible for disability and survivor deduction.
Ohio
10
Use to indicate the amount qualifies for retirement income credit.
Ohio
11
Use to indicate the amount qualifies for retirement income credit but is not eligible for disability and survivor deduction.
Ohio
24
Use to indicate military retirement.
Ohio
72
Normal, taxable IRA distributions made to a person that is 59 1/2 or older are assumed to be eligible for the retirement income credit. Use to indicate the distribution does not qualify for retirement income credit.
Oklahoma
24
Use to indicate military retirement.
Oklahoma
35
Use to indicate qualifying Oklahoma government retirement or federal Civil Service.
Oklahoma
60
Use to indicate federal Civil Service pension, in lieu of Social Security.
Oklahoma
99
Use to indicate other retirement.
Oregon
60
Use to indicate federal retirement.
Pennsylvania
20
Use to indicate nontaxable amount.
Pennsylvania
29
Use to indicate taxable amount.
Rhode Island
24
Use to indicate Military Service Pension benefits to be reported as a subtraction on Schedule M, Line 1(v).
South Carolina
24
Use to indicate military retirement.
South Carolina
75
Use to indicate a pension adjustment if the amount is eligible for South Carolina exclusion (part-year residents only).
Utah
24
Use to indicate military retirement distributions that qualify for Utah military retirement deduction as code AJ on Form TC-40A.
35
Use to indicate retirement distributions that qualify for the Utah retirement deduction.
Virginia
4
Use to indicate qualified death benefit from annuity contract.
West Virginia
8
Use to indicate state and local firefighter's pension.
West Virgina
19
Use to indicate teacher's or public employee's pensions.
West Virgina
24
Use to indicate military retirement.
West Virgina
75
Use to indicate federal retirement.
Wisconsin
12
Use to indicate pensions received from a United States government civilian employee retirement system. This will be an adjustment on Form 1, Page 1, or Form 1NPR, Page 2.
Wisconsin
24
Use to indicate military or uniformed services retirement.
Wisconsin
42
Use to indicate pensions received from Milwaukee city employers and Wisconsin state teachers retirement systems. This will be an adjustment on Form 1, Page 1, or Form 1NPR, Page 2.

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
  • State: All states, Alabama
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