Hi I think I’m having an issue with turbo tax for PA state. For my PA-40 under gross compensation worksheet within turbo tax I have entered a 1099R. When I originally withdraw the money as an early distribution I paid the state taxes up front which my 1099R shows. On my 1099R, box 7 shows a 1. This is showing up on the PA-40 worksheet along with I21 early distribution. However I’m not seeing this on the finished PA-40 form for filing. The issue I'm having is it’s showing a refund for the amount that was taxed. This isn’t making sense since this was an early distribution. I believe this should be a no refund/no payment due. Much help would be appreciated before I file my state tax. Thank you in advance.
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Your early distribution should be taxable. I21 is the correct code which should make your distribution taxable in TurboTax.
Did you enter a basis? Go to Tell Us About Your Retirement Income in Pennsylvania and confirm the Basis of Retirement Income is $0.
You could also try deleting and re-entering your 1099-R.
Yup the basis or retirement income should have been 0. Thanks so much for the help!!!
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