I have a very simple trust with the person transferring the property living in FL (never lived in PA) , the Fiduciary is me here in PA, and it has a single beneficiary that also lives in FL. It generates only one 1099-R form with the following boxes filled in:
Gross Distribution(1),
Taxable Amount (2a),
Distribution Code of 7D(7),
State (13) filled in with PA... and a
State Distribution(14) with same amount as box 1.
On my federal return, I entered this 1099-R information as 1099-R should be entered as Other Income.
Currently, when I do the PA State, the PA-41 shows no income, therefore all values on PA-41 shows as $0. The PA-41 Schedule DD shows box 8a and 11 - "Total required to be distributed", "Total cash Distributed" as the 1041, Lines 17/18.
1. Do I even need to file a PA-41 ?
2. If I do need to file, is the PA-41 correct as is?
3. Or do I enter the 1099-R Gross Distribution so it shows up as income and appears on PA-41 Schedule DD as Lines 1A/B.
4. Is TurboTax Business for PA State correct?
Appreciate the help.
Tom
Generally, if box 7 of your 1099R is coded 7 or 4, it is not taxable for PA income tax purposes. If it coded 1 or 2, it may be taxable to the extent that the distributions exceed your basis in your retirement plan. If coded 1D or 7D, it is a commercial annuity and is taxable same as federal.
Yes, you can prepare a PA-41 state return in Turbo Tax if you are required to.
Generally, if box 7 of your 1099R is coded 7 or 4, it is not taxable for PA income tax purposes. If it coded 1 or 2, it may be taxable to the extent that the distributions exceed your basis in your retirement plan. If coded 1D or 7D, it is a commercial annuity and is taxable same as federal.
Yes, you can prepare a PA-41 state return in Turbo Tax if you are required to.