amfdonahue
Returning Member

PA form 40 and Local earned income tax in PA

Hello - Ready to pull out my hair..so many different answers to the same question question - I appreciate your help. In 2014 - I used Turbo Tax to file a PA 40 - I also had a 401K distrbution =at the time I was 58 and 8 months old -but retired from the company holding my 401 K - My question is...turbo tax included my 401K distribtion on line 1 gross compenstion. As a result, years later the Local Earned Income tax collector in PA - is saying I am deluqinint and there was not enough $ taked out of my W2 for the 1.25 % local tax. So that lead to my research - some sites say - no 401K withdrawals is added to income  ie taxable in PA - then the next site says it is. SHould Turbo tax in PA add 401K withdrawals to my income ?? yes or no ...and also my 401 K contributions for that year find on my W2 - but my overall contributions are far more than what I withdrew. I appreciate the help TY