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Pension State and Federal Withholding

I receive a pension and a 1099-R for it. Initially, nothing was being withheld for state or federal - I changed it to have a state and federal witholding. Turbotax is asking if the taxable distribution for the state is different from the federal. My box 16 is blank - so should I enter the box2a as a subtraction? Perhaps my pension is not taxable in the state of california?

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1 Reply
MaryK4
Expert Alumni

Pension State and Federal Withholding

No, California taxes all retirement income, there is no special tax treatment, exclusion or subtraction so you do not need to adjust the amount.

 

Retirement account income — even if it isn't withdrawn early — is considered taxable income in California, including withdrawals from a 401(k), IRA and pension (government pension or private employer pension). Social Security benefits aren't taxed.

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