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State tax filing
From the IRS.gov link Tom provided, here is my case:
Copied from (https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-...)
Most pre-retirement payments you receive from a retirement plan or IRA can be “rolled over” by depositing the payment in another retirement plan or IRA within 60 days. You can also have your financial institution or plan directly transfer the payment to another plan or IRA.
60-day rollover – If a distribution from an IRA or a retirement plan is paid directly to you, you can deposit all or a portion of it in an IRA or a retirement plan within 60 days. Taxes will be withheld from a distribution from a retirement plan (see below), so you’ll have to use other funds to roll over the full amount of the distribution.
According to the above information, this is not taxable, since I deposited the full amount, into another IRA, within 60 days (actually was same day)
With that said in this section, if rollover is selected PA tax is owed. However this is not taxable. How can this be corrected in TT Desktop?