Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
Steve286
New Member

PA tax form keeps asking about retirement income from PA when it comes from MA; it's exempt from PA state tax but doesn't exempt it

 
1 Best answer

Accepted Solutions
re2boys
Level 9

PA tax form keeps asking about retirement income from PA when it comes from MA; it's exempt from PA state tax but doesn't exempt it

If you are a PA resident, your retirement income is reportable and may be taxable on your resident PA tax return, regardless of where it is from.

During the PA interview, you are asked what type of retirement income is represented by each 1099R. The answer to this question will determine its tax treatment.

If box 7 on the 1099R is coded 4 or 7, it is not taxable.

If the code is 1 or 2, it is taxable to the extent the distribution exceeds your basis in the plan.

If he code has a "D", such as 7D or 4D or 1D, it is a commercial annuity and is taxable to PA same as federal. 

View solution in original post

1 Reply
re2boys
Level 9

PA tax form keeps asking about retirement income from PA when it comes from MA; it's exempt from PA state tax but doesn't exempt it

If you are a PA resident, your retirement income is reportable and may be taxable on your resident PA tax return, regardless of where it is from.

During the PA interview, you are asked what type of retirement income is represented by each 1099R. The answer to this question will determine its tax treatment.

If box 7 on the 1099R is coded 4 or 7, it is not taxable.

If the code is 1 or 2, it is taxable to the extent the distribution exceeds your basis in the plan.

If he code has a "D", such as 7D or 4D or 1D, it is a commercial annuity and is taxable to PA same as federal. 

Dynamic AdsDynamic Ads
Privacy Settings
v