Wendy's pesion is a state pension and no state tax is to be paid but your system is making us pay how do I fix ?

[IreneS]

What state?

[krysler1]

Pa.

[IreneS]

You can indicate on your PA return that the pension Wendy received is not taxable.  Please follow these steps:

1. Go back into your PA return.
2. On the screen, You've Finished Your Pennsylvania Return, click the Update box next to Income and Adjustments.
3. On the screen, What kind of retirement income do you have from Pennsylvania, select PA school, state or muni employee plan and click Continue.
4. On the screen, Tell Us About Your Retirement Income, you should see the following note: 

This is a normal retirement distribution from a State Employees, PA School, PA Municipal, or U.S. Civil Service Commission Retirement Disabiity Plan and is not taxable for PA purposes. 


5. Just click Continue.