PA State tax

Forum|Forum|6 years ago
March 17, 2020
1 reply
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My PA state tax summary in turbo tax includes my Navy retirement as INTEREST, taxable in PA, when that Navy retirement is not taxable in PA

KathrynG3

Level 14

Adjust your state return. I recommend deleting your state and re-adding it.

To delete and re-add the state:

From the left menu select State>
Continue>next to your state, click the Trash Can icon and follow through the rest of the questions ending with Done
Click Add Another State>Your state>and go through the interview again.

For your reference, see 2019 Pennsylvania Individual Income Tax Form PA-40 Instructions, page 8, you are correct. Military pension benefits are not taxable for PA PIT purposes.

re2boys

Level 9

The program will ask you to select what type of retirement income is represented by each 1099R. Do NOT select "annuity". PA treats the taxable portion of a commercial annuity as taxable interest.