@Locator2020 wrote:
Box 7 is code 8.
I also do not understand how an IRA distribution is taxable in PA. PA does not allow a deduction for IRA contributions. IRA contributions are taxed as income in PA.
A code 8 is a "return of contribution" and should be treated as if the contribution never happened in the first place.
Only the box 2a (the earnings that were also returned) is taxable an should be on the 1040 form line 4b.
If you previously entered the $6,000 contribution in the IRA contribution section - remove it since that contribution was returned and never occurred.
I don't know about PA but I suspect that the contribution was not removed from the IRA contribution section.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
