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New Member

My wife receives an ongoing 1099-R death benefit from State of MN. We live in PA, and this should not be taxable to PA, but Turbotax is calculating PA tax. How do I fix?

It's from State of MN Teachers Retirement Assoc. (Her parents were teachers.) I've already entered the Box 7 distribution code 4 for death benefit. The State Taxes portion of Turbotax is asking: "What kind of retirement income do you have from PA?" It's not from PA! Is there a correct choice from the drop-down list? Perhaps:"I'm eligible; plan's eligible (no PA tax)" or "U.S. Civil Svc ret/disability/annuity"?

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New Member

My wife receives an ongoing 1099-R death benefit from State of MN. We live in PA, and this should not be taxable to PA, but Turbotax is calculating PA tax. How do I fix?

In your situation the best coding for Pennsylvania is:  I'm eligible, plans eligible (No PA tax).

This will take care of the taxing responsibilities for your state of residence.

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Level 1

My wife receives an ongoing 1099-R death benefit from State of MN. We live in PA, and this should not be taxable to PA, but Turbotax is calculating PA tax. How do I fix?

This is a little different, my father passed away and I am not seeing where I note the 1099-R for the federal income tax, since this is a death and it is a payout form a Life Insurance I do not see where I put this information in my return?

 

There is no state tax, but I am not sure how to do federal, this came with a 1099-R but it is from the life insurance company.

 

Any info would be appreciated.

 

Thanks