neilmoses
Returning Member

PA 1099-R distribution code 7D

There appears to be an error in Turbotax carrying over 1099-R income to the PA state return.  While most 1099-R income in PA is not taxable, there are situations where the income is taxable. My understanding is that if the distribution code on the 1099-R form is 7D, it means that the income is taxable in PA.  I even had one 1099-R form that specifically shows the amount of the distribution that is taxable in PA (Box 16 on 1099-R form), yet this amount does not transfer over as taxable income on my PA filing.  This situation also occurred in my 2021 filing which resulted in my owing back taxes in PA along with a penalty and interest.  Is Turbotax aware of this issue and is something being done to correct it?