Hello,
I had a 401k loan with a former employer which was being paid back via payroll. I left the job in 2021 and had a leftover balance which I didn't pay off. I received a 2021 1099R form which shows the taxable amount (remaining loan balance). I realize this is taxable and penalized on federal taxes which I see was already handled by my TurboTax filing, but should this also be taxed on state and local tax returns? I assume yes, but I keep finding conflicting information so I'm not quite sure. I live in Pennsylvania.
Thanks for your time!
