Receive a pension from PA state employment that is exempt from PA state and local taxes. When I enter my 1099R info into turbo tax, my PA state tax amount owed go way up

[jcbowman]

Seemingly not recognized as being exempt. Advice is appreciated.

[xmasbaby0]

Strange....since PA does not tax retirement income.   Are you sure you entered the pension income in the right place?

To enter your retirement income, Go to  Federal> Wages and Income>Retirement Plans and Social Security>IRA  401 k) Pension Plan Withdrawals to enter your 1099R.

[SteamTrain]

For most states software, the deduction is made right after you enter the 1099-R in the Federal section.

But for PA software, the $$ are included in PA income until you've filled out the entire Federal section, then when starting thru the PA software, it will then ask you about the source of the various 1099-R forms you may have entered...you will be able to select a PA public pension type at that time.  Only then will the $$ be deducted from PA income.

[rk38]

Under box 14 is "Exempt"

box 15 is NY

box 16 is a state number

box 17 is state distribution.

I live in WI.

Do  I enter all of this information?  I don't see any way to enter "exempt" on turbotax.  Is there a way to do this.

[SteamTrain]

@rk38 

1) you cannot enter "exempt" in that box.   How it ends up getting exempted is during the entry of that 1099-R in the software...usually when you "Continue" after the main 1099-R entry page with all the boxes in the software.

2)  You are in WI......but it has NY in the state line?   Why?   When did you move to WI and when were the distributions made?/////before or after you (apparently) moved to WI?   

That detail is critical to determining which state gets to include that retirement income on their tax return, even if it does end up being exempt.  And WI may not exempt any of that retirement income if you were not age 67 or older during 2025  (IF...if it was all received after you moved to WI).

[rk38]

It was inhereted.

[rk38]

Turbotax live helped me out. Thanks.