In the PA interview, go to the income and adjustments section and start through the interview. After it asks questions about W2 (if you have any) it will ask about pensions. It will ask “What kind of pension income did you have from PA? Click on the state type code and select the proper type of pension. There is no distinction between pensions, IRA or other 1099-R distributions here. (See the attached screenshot below. Click to enlarge.)
Continue to review them (don't click Done With State until after you reviewed and corrected anything that needed to be changed).
Please see below for more information.
Not all 1099R distributions are exempt from PA income tax. You have the opportunity, in the PA interview, to review each 1099R and designate what kind of retirement distribution it is.
The income reported on a 1099R is considered taxable unless you tell the program otherwise.
Retirement plan distributions need to be reported on a PA income tax return. Normal distributions (Box 7 coded a 4 or 7) are not taxable on a PA income tax return.
Distributions coded with a D (such as 7D) are annuity distributions and are taxable same as federal.
Your basis is the amount you contributed to the retirement plan through the years ($24,000). You don't count earnings or employer contributions, only your own personal contributions.
Your current basis is the amount you contributed to the plan less any previous distributions from the plan taken in earlier years.
In order to get there quickly, simply click on State Taxes across the top and click Continue to review them (don't click Done With State until after you reviewed and corrected anything that needed to be changed).
