How do I report the taxable income of a non-qualified variable income (for 1099-R Code 7D) on my PA Sate return?

[Bernhard]

I received a form 1099R form for a non-annuitized distribution from a nonqualified annuity. This money is all taxable as indicated in box 2a and comes with a D distribution code in box 7. The money is supposedly also taxable in my state ( Pennsylvania) and I should be listing it as interest somewhere. Can anyone tell me where I can enter this on my PA state return? Thanks in advance.

[DianeW777 · Accepted solution]

You are correct.,  Distributions from a commercial insurance or mutual company annuity (Code D also included with Code 7) purchased as a retirement annuity are not distributions from an eligible employer-sponsored retirement plan and are taxable as interest income to the extent they are included in federal gross taxable income. 

• 2023 Pennsylvania Personal Income Tax Return Instructions

When you are in the Pennsylvania (PA) tax return continue to the screen 'What kind of retirement income do you have from PA?'

Select from the dropdown 'Non-qualified deferred comp plan'.

TurboTax will automatically enter the interest income on the PA Schedule A.

[Bernhard]

Thank you but I can't see a screen titled "What kind of retirement income do you have from PA?'" If I switch to the actual PA tax form, I can see the correct Federal income for the respective 1099R and the corresponding State text box (to the right) that is empty and cannot be changed on the tax form. I am unable to enter the corresponding interest for PA . Perhaps something is missing where I entered the 1099-R as Federal income but I can't figure out what is missing ...

[PatriciaV]

You might go back and review your entry for Form 1099-R to be sure you accurately entered the State information for Boxes 14 through 16. These entries should trigger the question in the interview for your State return.

[Bernhard]

Although I entered the 1099 R box14-16 info correctly I couldn't get TT to trigger corresponding interview questions on my PA return. However,  I was able to enter the interest on the PA tax form manually. So, thank you!

[DianeW777]

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions: 

TurboTax Online:

Go to the black panel on the left side of your program and select Tax Tools. 

1. Then select Tools below Tax Tools. 
2. A window will pop up which says Tools Center.  
3. On this screen, select Share my file with Agent. 
4. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. 
5. Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.  

TurboTax CD/Download:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

1. Click on Online in the top left menu of TurboTax CD/Download for Windows
2. Select 'Send Tax File to Agent'
3. Write down or send an image of your token number and state then place in this issue.
4. We can then review your exact scenario for a solution.
5. Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution. 

[Bernhard]

I'm using the Download version for Mac - neither of these instructions work for me 

[CatinaT1]

The steps are similar for a Mac:

1. Go to Menu
2. Select Help
3. Select Send File to Agent
4. A 7 digit code will be generated