How is 1099R Income to be reported on PA State Returns?

[re2boys · Accepted solution]

Generally, if box 7 of your 1099R is coded 7 or 4, it is not taxable for PA income tax purposes.  If it coded 1 or 2, it may be taxable to the extent that the distributions exceed your basis in your retirement plan. If coded 1D or 7D, it is a commercial annuity and is taxable same as federal.

Your basis in a retirement plan is the money that you contributed to the plan less any distributions taken in previous years.  The basis does NOT include earnings inside the plan or your employer contributions.

If you rolled over the distribution into another retirement plan or converted it into a Roth IRA, it is also not taxable.

You must tell the program what kind of retirement distribution you received or the program will consider it taxable.

[jmelvin2783]

If box 7 says 7 then which option would I use in the drop box. I'm confused.

[jlkauffman67]

Thanks, I figured out my problem.  I was looking at the Federal Taxes Tab for the drop down screen, because that is where I entered the Amount from the 1099R.  However, when I walked through the State Taxes screens, that is where I found the drop down screen to indicate what the distribution was from.  

[Steven63]

I read the response to the question from the person in PA.... "if box 7 of your 1099R is coded 7 or 4, it is not taxable or PA income tax purposes."  Is this true of all states?  I'm in Ohio and box 7 on my 1099R has a "7" and there are no listed deductions showing for the state on the form (boxes 12-14).

[KathyS1]

What if box 7 is 4 and 4D and both 1099R's withheld PA state tax? Are they taxable to PA? 

[MaryK1101]

Yes, this is a non qualified retirement payment paid to beneficiary so it is taxable in Pennsylvania.  

Code 4 Death distribution. This is a distribution due to death and/or disability. A distribution due to death is not taxable for PA purposes - unless included with Code D.  See How do I know if the amount on my 1099R (1099-R) is taxable on my PA Personal Income Tax Return?

@KathyS1