Pennsylvania Income Tax Return Wages

[bhlevine]

In completing the W-2 information in TurboTax for the Pennsylvania income tax return, do I enter the LARGER of the amount in box 1, box 5, or box 16?

Thank you.

[MaryK4 · Accepted solution]

For Pennsylvania, you want to enter the Box 16 amount.  

[bhlevine]

I don't think that answer is correct.   I think Pennsylvania includes contributions to retirement plans (401(k) and 403(b), etc.)  unlike federal law which does not include contributions in the calculations of wages.   I would appreciate if someone could verify this for me.   I find the instructions to Form PA-40 very confusing.   Thank you. 

[SusanY1]

A W-2 for Pennsylvania wages should have this number in Box 16 correctly populated based on state law.  If  you feel it does not, please contact your payroll administrator for clarification. 

[bhlevine]

The correct answer is that you have to complete a form titled "PA W-2 Reconciliation Worksheet.  This form takes into account Elective deferrals under IRC section 403(b) and other such deferrals.  It also subtracts the cost of group term life insurance.  This form is not on TurboTax.  Google to find it.