Retirement tax questions

Yes.  If you are a PA resident but worked out of state,  your employer may have applied the out of state rules for calculating your state income.  Many states will subtract certain benefits as nontaxable from your total income that PA does not allow.  Your PA taxable income should be very close to the box 5 Medicare wages.  They gave you specific instructions on how to adjust your federal wages to comply with PA law.

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