Maryland distribution amount of pension from Pennsylvania

[bekk1227]

I live in MD and receive a county pension from PA.  Turbo tax wants to know "Where this distribution is from?" My answer none of the above.  then it has my entire pension amount in the "Maryland distribution amount" but none of this pension is from Maryland, it is from Pennsylvania.  Should any amount be listed here?  It asks for payer's MD state ID no. of which there is none because it is from Pennsylvania.  Turbo tax keeps putting MD in Box 15.  Box 15 is blank on my 1099-R.  

[MaryK4]

You only pay retirement income in your state of residence when you receive it, regardless of where you previously worked or if it comes form another state.  Your income is correctly listed as Maryland.

[bekk1227]

Should box 15 "Payers State" be MD or PA? Residence is MD but pension comes from PA.  Thank you.

[ToddL99]

Box 15 "Payers State" should be be MD, not PA.

Your pension is subject to tax by your state of residence, Maryland, and not by the state where you "earned" the pension.

Effective for retirement income received after December 31, 1995, federal law prohibits any state from taxing certain retirement income (mainly pension income) unless you are resident of, or domiciled in, that state. For example, if you receive a pension from your former California employer and you now reside in New Mexico, California may not tax your retirement income. Because you are now a New Mexico resident, your retirement income is taxable in New Mexico.  

[bekk1227]

Thank you.  I don't think my question is being understood.  I understand I pay taxes to MD on the income regardless of where it came from.  My problem is turbo tax is asking for the Source of the distribution and other Maryland information? Also Payer's MD state ID no.  There is NO Maryland information because the income came from PA. There is no MD ID no. because it is from PA. Should box 15 be PA so turbo tax knows the money came from PA? Even tho it will be taxed by MD.  As it is, I cannot answer the questions Turbo Tax is asking me.  

[ToddL99]

Answer all questions as if the income is "sourced" in MD, since it is only subject to MD tax.  If Boxes 14-16 of your 1099-R are blank, leave them blank. If you are filing a MD resident return, the program  will automatically include this distribution in your MD taxable income

Do not add PA to Boxes 14-16 of your 1099-R interview. The only reason you would have PA information in these boxes is if the payer withheld PA tax from your pension. If this is the case, you'd have to enter it and file a PA non-resident return to get a refund of those taxes.

Not sure where you are being asked for the "source of the distribution", but I understand the confusion. 

There is no MD information in Boxes 14 - 16 of the 1099-R because the payer did not withhold any MD state tax or report the income to MD. 

[bekk1227]

Thank you.  I follow everything you said.  The "source of distribution" and "other maryland information" is what turbo tax is asking me about the pension money from the PA employer. That is what is making me think i filled out something wrong.  Federal form is ok. But I don't know how the answers I give will effect the MD State form, when I get to that part.  

[ErnieS0]

Your distribution is considered to be Maryland income since you are receiving your Pennsylvania county pension while living in MD.

The amount is entered on the Maryland resident income tax form in exactly the same way as a pension from a MD payer. That's my TurboTax is asking Maryland questions.

The source of the distribution should be “none of the above” since is it not a pickup contribution, military retirement or self-employed retirement.

The Maryland distribution amount should be the whole amount.

Last, it is from a qualified plan, since it is a pension plan.

[KaraU]

Where do I find the Maryland withholding and the MD Payer ID number?  There is nothing on the 1099-R

[BillM223]

Did you ask your pension administrator to withhold anything on this pension for Maryland?

Is there anything in boxes 14-16 on the 1099-R?

If you didn't ask for any withholding, then the pension administrator would have had no reason to need to put anything in those boxes, especially if box 14 is empty.

Or am I missing something?

@KaraU