PA State tax

3 replies
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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

Alumni - Intuit

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.