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New Member
posted Jun 6, 2019 5:42:52 AM

I received a 1099R for payments from an employer sponsored pension plan in 2016. How can I tell if this is subject to PA state income tax?

Distribution code on the 1099R is 7.  Terms like "qualified" and "eligible" in category choices on Turbo Tax are not really explained.

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Intuit Alumni
Jun 6, 2019 5:42:54 AM

 

The Pennsylvania instruction booklet does not have a specific category for a pension plan from an employer.  Instead it lists several characteristics that the pension plan must meet to be eligible to be tax free on the Pennsylvania return. 

 

To read more, use this link to find the current year instruction booklet for PA-40IN.  Look for the section related to retirement plans. 

https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Pages/Personal%20Income%20Tax%20-%202019.aspx

 

Even after reading the details, you may still have questions about your particular pension plan.  You may wish to contact your plan administrator if you have further questions about whether the distributions are taxable in Pennsylvania. 

 

[edited 3/10/2020 | 9:48 am PST]

1 Replies
Intuit Alumni
Jun 6, 2019 5:42:54 AM

 

The Pennsylvania instruction booklet does not have a specific category for a pension plan from an employer.  Instead it lists several characteristics that the pension plan must meet to be eligible to be tax free on the Pennsylvania return. 

 

To read more, use this link to find the current year instruction booklet for PA-40IN.  Look for the section related to retirement plans. 

https://www.revenue.pa.gov/FormsandPublications/FormsforIndividuals/PIT/Pages/Personal%20Income%20Tax%20-%202019.aspx

 

Even after reading the details, you may still have questions about your particular pension plan.  You may wish to contact your plan administrator if you have further questions about whether the distributions are taxable in Pennsylvania. 

 

[edited 3/10/2020 | 9:48 am PST]