I rolled over my employer 401k plan. I received two Form 1099-R, #1 for an RMD amount, #2 for the balance amount rolled over to the investment company.
#1 1099-R for the RMD shows Box 7, code "7" (i.e., normal distribution), this RMD amount is also shown in Box 16 State Distribution. Pennsylvania does not tax RMD distributions. TT does NOT ask me a question on if this distribution/amount is PA taxable or not. Consequently, it includes this RMD amount as PA taxable income.
Does TT have a way that the amount in box 16 is not included as taxable income? The PA state rules are clear that RMDs are not taxable in PA. Thanks for your help!
As you walk through the PA questions you will come to one that says "What kind of retirement income do you have from Pennsylvania" There you will choose I am eligible: plans eligible.
This will remove your RMD from taxable income.
Hi Vanessa, Thanks for your quick reply. I can't find that question in the State section of Turbo Tax. I even deleted the state all together and started over so that I could see all of the questions again. I am using the desktop version. Do you know how I can get to that question? And to confirm, it is in the State section in Turbo Tax (not the Federal)?
The question is shortly after it asks you about income. You will go through the verify your state residency, county, school district stuff, then it is like 4 or 5 screens later.
Yes, this question is in the state section not the federal section.