PA Tax laws for 59.5 years old

[dahartman1]

I turned 59.5 yrs old in Sept 2019.  I withdraw money monthly from my IRA.  Turbotax is asking me for the IRA if the withdraw is "I am under 59.5 or I am over 59.5"  There is no follow up question to ask when I turned 59.5.  Do I have to be 59.5 from the start of Jan 2019 to qualify for this tax break?

[JulieS]

No, you don't. the program is asking if the withdrawal was before or after you turned 59.5 because that program knows how old you are, but it can't tell the date of withdrawal. 

So just answer that question and the program will be able to apply or waive the penalty based on your answer. 

[dahartman1]

Based on your answer, it would appear that Turbotax has a flaw in the system for states where once you turn 59.5 the tax on your IRA withdrawals goes away.  I turned 59.5 yrs old in Sept.  The question about my age is for the full amount of the IRA and when I answer I am over 59.5yrs old, Turbotax does not tax any of my IRA withdrawals.  If I answer I am under 59.5 yrs old, Turbotax has the PA state tax included for the full year.  Turbotax does not allow me to change the amount of the IRA for over and under 59.5 or ask me when I turned that age.  Being that I hit that age in Sept, I am forced to claim I am under 59.5 yrs and over pay my taxes in PA for 2019.  thank you for the information

[SusanY1]

TurboTax knows when you turned 59.5 because you entered your full date of birth into the TurboTax program the Personal Info section, that is why it didn't ask that question.  It already knows that your birthday is in September.  

When you go through the Pennsylvania state-specific interview questions, you will have the opportunity to make additional adjustments related to your retirement income since there are several differences in how PA treats retirement income and deductions.

The numbers that you see as you answer the questions in the federal section haven't taken that additional information into account yet.  

[dahartman1]

My federal taxes are not impacted by what I am answering in the PA section.  Specifically in the State section, it ask me if my IRA withdrawals (the full amount) is "I am under 59.5" or "I am over 59.5".  Being I turned 59.5 in September, I have answered the question both ways to see the impact on my taxes.  If I say I am under 59.5, I owe PA state taxes of around $200.  If I say I am over 59.5, I get a refund of over $600.  No impact from this question on my federal taxes, which I understand as this is a state question.

Therefore Turbotax is flawed in that it does not take a percent of that IRA withdrawal for after I turned 59.5 yrs old and say that portion is not taxable in the state of PA.  I therefore need to overpay my state taxes for 2019 as I cannot find a way around this issue.  I appreciate the response and sorry if I gave you the impression I was talking about federal taxes.