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orpheancry
New Member

I am being charged state tax on a public school employee retirement payment that should never be charged state tax. The Pennsylvania based retirement system is not taxed.

 
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re2boys
Level 9

I am being charged state tax on a public school employee retirement payment that should never be charged state tax. The Pennsylvania based retirement system is not taxed.

If box 7 of the 1099R is coded a 1 or 2 (early retirement distributions), it may be taxable on a PA income tax return.  Codes 4(death) and 7(normal distributions) are not subject to PA income tax.

If an early distribution, that portion of the distribution that exceeds your basis in the plan is taxable.  Your basis is the sum of all contributions you made into the plan through the years less the sum of all previous distributions from the plan.

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re2boys
Level 9

I am being charged state tax on a public school employee retirement payment that should never be charged state tax. The Pennsylvania based retirement system is not taxed.

If box 7 of the 1099R is coded a 1 or 2 (early retirement distributions), it may be taxable on a PA income tax return.  Codes 4(death) and 7(normal distributions) are not subject to PA income tax.

If an early distribution, that portion of the distribution that exceeds your basis in the plan is taxable.  Your basis is the sum of all contributions you made into the plan through the years less the sum of all previous distributions from the plan.

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SteamTrain
Level 15

I am being charged state tax on a public school employee retirement payment that should never be charged state tax. The Pennsylvania based retirement system is not taxed.

Finish all your Federal stuff first...put everything in there.

The 1099-R will show as taxable in PA...until you actually go thru the PA questions (Picture below)....but you need to finish everything in the Fed section first

*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
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