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Level 1

Does income from nonqualified annuity get taxed bu pennsylvania?

all information from 1099r was entered but does not show as taxable on the PA return

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Level 18

Does income from nonqualified annuity get taxed bu pennsylvania?

You are correct that a nonqualified annuity is normally taxed in Pennsylvania. See https://revenue-pa.custhelp.com/app/answers/detail/a_id/368/~/are-distributions-from-an-annuity-taxa...

If it is showing as non-taxable, it may be for one of two reasons:

1. In the Pennsylvania interview, you checked one of the type of plans that is non-taxable on one of the screens with the heading "What kind of retirement income do you have from Pennsylvania?" Checking most (or all) of these entries will make the annuity non-taxable in PA.

2. You did not notice that in Pennsylvania, such distributions are reported as "interest" income. The note at the bottom of this screen ("What kind of retirement income do you have from Pennsylvania?) points out that TurboTax will transfer it automatically to PA Schedule A (which is not like Schedule A on the federal return; rather it is for Pennsylvania interest income).

2 Replies
Level 14

Does income from nonqualified annuity get taxed bu pennsylvania?

What is the code in box 7 of the 1099R? If it contains the letter D, then it is taxable in PA the same extent as federal and it will appear as interest income on Schedule A.
Level 18

Does income from nonqualified annuity get taxed bu pennsylvania?

You are correct that a nonqualified annuity is normally taxed in Pennsylvania. See https://revenue-pa.custhelp.com/app/answers/detail/a_id/368/~/are-distributions-from-an-annuity-taxa...

If it is showing as non-taxable, it may be for one of two reasons:

1. In the Pennsylvania interview, you checked one of the type of plans that is non-taxable on one of the screens with the heading "What kind of retirement income do you have from Pennsylvania?" Checking most (or all) of these entries will make the annuity non-taxable in PA.

2. You did not notice that in Pennsylvania, such distributions are reported as "interest" income. The note at the bottom of this screen ("What kind of retirement income do you have from Pennsylvania?) points out that TurboTax will transfer it automatically to PA Schedule A (which is not like Schedule A on the federal return; rather it is for Pennsylvania interest income).