You can indicate on your PA return that the pension Wendy received is not taxable. Please follow these steps:
- Go back into your PA return.
- On the screen, You've Finished Your Pennsylvania Return, click the Update box next to Income and Adjustments.
- On the screen, What kind of retirement income do you have from Pennsylvania, select PA school, state or muni employee plan and click Continue.
- On the screen, Tell Us About Your Retirement Income, you should see the following note:
This is a normal retirement distribution from a State Employees, PA School, PA Municipal, or U.S. Civil Service Commission Retirement Disabiity Plan and is not taxable for PA purposes.
- Just click Continue.
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