I surrendered a life insurance policy that I had through my employer, premiums paid with after-tax money. The surrender value is less than the premiums paid. In Turbotax, if I enter the PA distribution category as life insurance, Turbotax calculates the distribution as being taxable. Since the proceeds are less than the premiums paid, shouldn't it be nontaxable? Box 2a of the 1099R is blank, so I assumed it was not taxable at the federal or state level. Is PA different?
