I'm not certain I understand what you are asking. I also am not familiar with PA tax law. Let me try generally...if pension payments are not taxable in PA, then taxable income on the individual state return should not reflect the gross amount of the pension or the reduction for income in respect of decedent. I do not know if a pension payment collected by an estate is not taxable in PA. But if it is, then there should be no entry on the estate return for this item of income in respect of decedent. It is ok if your state return is different from your federal return. Different set of laws.
Good luck with all this.
