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sgrif47
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TurboTax Pennsylvania is taxing my pension. Pensions are not taxable in Pennsylvania.

 
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2 Replies

TurboTax Pennsylvania is taxing my pension. Pensions are not taxable in Pennsylvania.

Your retirement is NOT taxable for PA income tax if you retired AFTER meeting the eligibility requirements for separation from service by retirement based on old age, infirmity, long-continued service, or a combination of old age and infirmity and long continued years of service.

TurboTax Pennsylvania is taxing my pension. Pensions are not taxable in Pennsylvania.

During the PA interview, you will be asked what type of retirement plan distribution is represented by each 1099R. If you skip this step, your the default is that the distribution is taxable.

If box 7 on the 1099R is coded 4 or 7, it is not taxable.  If it coded with an "D" such as 1D or 4D or 7D, it is from a commercial annuity and is taxable same as federal.

If it coded a 1 or 2 it is an early distribution and is taxable to the extent it exceeds your basis in the plan.  Your basis in the plan is the sum of all contributions you made over the years less all previous distributions from the plan. Do not include employer contributions or earnings. You may need to ask the plan administrator for this information.

See: https://revenue-pa.custhelp.com/app/answers/detail/a_id/1470/~/how-do-i-know-if-the-amount-on-my-109...

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