1099R

[johndeininger]

A 1099R with distribution code 4D with non qualified tax status . Do we pay PA taxes on the gross distribution block 1 or the taxable amount in block 2A

[DianeW777]

No, not in Pennsylvania (PA).

Code 3 or 4 Death/Disability Distribution 

This is a distribution due to death and/or disability. Distributions due to death or disability are generally not taxable for PA purposes. However, if the distribution codes are Code 3D or Code 4D, these distributions are taxable to the extent they are taxable for federal income tax purposes as interest income on Line 11 of PA Schedule A. 

• PA 40 Instructions (page 13)