How to report Roth conversion in Pennsylvania (on PA-40 income tax form)

[bobdylan11111]

I converted $1000 traditional IRA to Roth IRA under age 59.5 for which I received a 1099 R.  According to multiple sources including PA revenue websites, the conversion is NOT taxable even before age 59.5 if you "rolled the entire distribution (100%) into a Roth directly or within 60 days".   However, it seems that the PA state income form (PA-40) wants you to include all amounts on 1099 R (including the converted amount) as a total income, but there does not seem to be a way to deduct the converted amount from the total income on the form, thus making the converted amount ($1000) taxable????  Could any tax experts in Pennsylvania give any guidance?  

[DanaB27]

Yes, the conversion of a traditional IRA to a Roth IRA is generally not taxable in PA (PA DOR).

TurboTax should automatically not include the amount in your gross compensation on line 1a.  You can also check your Gross compensation Worksheet.

If you have the conversion included in your gross compensation then it would be helpful to have a TurboTax ".tax2021" file that is experiencing this issue. You can send us a “diagnostic” file that has your “numbers” but not your personal information. If you would like to do this, here are the instructions for TurboTax Download: 

1. On your menu bar at the very top, click "Online"
2. Select "Send Tax File to Agent"
3. Click "Send"
4. The pop-up will have a token number
5. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information.  

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.