State tax on IRA withdrawals

[cynotax]

Withdrawals from Rollover IRA and Traditional IRA are supposed to be taxed the same way.

Preparing my taxes with desktop TurboTax - state tax return, Pennsylvania.

If I select "Traditional or Roth IRA, I'm over 59.5" my owed tax calculation remains at zero.

If I select "Rollover" my owed tax increases over $1,000.

[DavidD66 · Accepted solution]

If you select "Traditional or Roth IRA..." the program doesn't yet know if the distribution in taxable or not, and if taxable how much of it is taxable.  It could be a Roth IRA that is not taxable or a Traditional IRA with non-deductible contributions.  You have to finish entering the Form 1099-R and then go through all the questions by clicking on Continue once you see the Summary page.