Why does my Pennsylvania tax liability continues to go up as I enter my retirement incomes why is this when Pennsylvania is exempt from retirement tax???

[AnthonyC · Accepted solution]

Have you actually finished completing the PA return portion?  It will often start as taxable but, during the interview, you will be asked: "What kind of retirement income do you have from Pennsylvania?"  From the drop-down menu, you can select a designation which fits your pension or retirement income, including a default option for "I'm eligible, Plan's eligible. No PA tax"  After you indicate your type of retirement income, the tax liability should come back down.

See attached screenshot (note you may need to click edit next to your retirement income source on a Retirement Income Summary page before you get to this screen)