1040 States: Retirement State Use Codes

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If you are processing a state return that has a distribution from a retirement plan, enter the state postal code in the State field on the federal 1099R screen. There are some states that 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 are applicable to the state you entered in the State field on the federal 1099R screen. Use the Search field to search the table data.

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.
17 Use to indicate a Keogh distribution that is not fully taxable. Pension income with this code transfers to the Alabama pension taxability worksheet.
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.
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.
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.
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.
50 Use to indicate an SEP distribution that is not fully taxable. Pension income with this code transfers to the Alabama pension taxability worksheet.
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).
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.
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.
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.
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.
60 Qualifies for Civil Service Annuity deduction on Schedule 2 or Schedule C if the age restriction is met.
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.
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.
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.
42 Use to indicate state employee retirement.
45 Use to indicate state teacher's retirement.
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.
24 Use to indicate military retirement.
34 Use to indicate military survivor annuity.
72 Use to indicate retirement benefits not qualified for the pension income deduction.
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.
24 Use to indicate military retirement.
30 Use to indicate police retirement. Only applies to pension and disability payments for job-related injuries or disabilities.
32 Use to indicate Keogh or deferred compensation plan. These distributions are not eligible for the Maryland pension exclusion.

Maryland Note: Amounts entered using distribution codes 5, 6, 9, or W, are not used on the Maryland Pension Exclusion Computation Worksheet.
Massachusetts 1 Use to indicate IRA distributions.
10 Use to indicate an IRA distribution not subject to recovery of contributions. See 1040-MA user documentation for more information.
16 Use to indicate Keogh distributions.
69 Use to indicate nontaxable U.S., state, and local government distributions.
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.)
24 Use to indicate a Military Retirement distribution to be reported as a subtraction on Schedule 1, line 9.
78 Use to indicate a private retirement distribution that qualifies for the limited subtraction on Form MI-1040.
81 Use to indicate a public retirement distribution that qualifies for the unlimited subtraction on Form MI-1040.
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.

Minnesota Note: If you make the election to report the capital gain portion of a qualifying lump-sum distribution on federal Form 4972, the amount of gain shown as an addition to income on Minnesota Schedule M-1M is transferred directly from the federal 1099R screen. The total from all Forms 4972 (if applicable) is transferred.
Mississippi 75 Use to indicate pension adjustment.
Missouri 78 Use to indicate private retirement benefits that qualify for deduction.
81 Use to indicate public retirement benefits that qualify for deduction.
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.
28 Use to indicate non-military pension not taxable.
New York 12 Use to indicate federal retirement.
15 Use to indicate firefighter's retirement.
21 Use to indicate local government retirement.
24 Use to indicate military retirement.
29 Does not qualify for exclusion.
42 Use to indicate state employee's retirement.
45 Use to indicate state teacher's retirement.
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 fieldview and code 81 in the State use fieldview.
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.
10 Use to indicate the amount qualifies for retirement income credit.
11 Use to indicate the amount qualifies for retirement income credit but is not eligible for disability and survivor deduction.
24 Use to indicate military retirement.
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.
35 Use to indicate qualifying Oklahoma government retirement or federal Civil Service.
60 Use to indicate federal Civil Service pension, in lieu of Social Security.
99 Use to indicate other retirement.
Oregon 60 Use to indicate federal retirement.
Pennsylvania 20 Use to indicate nontaxable amount.
29 Use to indicate taxable amount.

Pennsylvania Note: When you enter distributions from life insurance, annuities, or endowment contracts, additional data entry is required in the Pennsylvania PA1099 screen.
South Carolina 24 Use to indicate military retirement.
75 Use to indicate a pension adjustment if the amount is eligible for South Carolina exclusion (part-year residents only).
Utah 35 Use to indicate retirement distributions that qualify for the Utah retirement deduction. The taxable amount of each distribution with this State use code transfers to Form TC-40C, line 7.
Virginia 4 Use to indicate qualified death benefit from annuity contract.
West Virginia 8 Use to indicate state and local firefighter's pension.
19 Use to indicate teacher's or public employee's pensions.
24 Use to indicate military retirement.
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.
24 Use to indicate military or uniformed services retirement.
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.

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