According to the Massachusetts instructions, pension income or survivorship benefits received from the U.S. uniformed services are exempt from taxation in Massachusetts.
This exclusion is not automatically calculated by the program when you create your Massachusetts return. You will need to manually exclude this income by going to:
- State Section
- Massachusetts Return
- Edit
- Income Subject to Tax
- Exempt Pensions and Annuities
- Enter the amount of government pensions and annuities exempt under Massachusetts law