IsabellaG:
I just had a chance to try the approach you detailed in your post on 4/9/24 (Tuesday). I followed your detailed instructions and there is still an error message received, although a different one than in the past. [Please note that I tried your approach with both a $0.00 in Box 17, and I also left Box 17 blank. Neither addressed the error.] The error is noted in the PA-40 Gross Compensation Worksheet in the NT/TXBL column where a red X is noted in the column. In addition, the PA return review provided the following error:
"Check This Entry
Gross Compensation Worksheet: Include W-2 as taxable Full-year PA resident must include all income. Line item for W-2 number should marked taxable to PA.
[ ] Include W-2 as taxable"
In addition, when I tried to proceed without making the W-2 income taxable for PA, and I hit the Transmit Returns Now button, I received a message that a little more information was needed before I E-file, and it looped back to the message noted above.
It seems that the only way I will be able to E-file is for TurboTax to change the program so as to allow a pension plan to be non-qualified and taxable under the Federal taxation rules, and qualified and non-taxable under the PA rules.
I should note that the pension plan referenced is associated with a Pennsylvania-based company ranked in the top 250 of the Fortune 500, and would be applicable to any retirees in the past 30+ years who were at a manager or higher level. I believe a large number of these folks likely reside in PA, and would have the same issue as I am experiencing with TurboTax.
Please provide your thoughts. Thanks.
