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PA 1099-R problem Income should not be taxable

I have a problem with my PA income tax PA-40.  I have 2 identical 1099-r forms. One for 2018 and one for 2019.  I keyed them exactly the same. Last year the income was not taxable for PA this year it is taxable.

The form for both years has a code 7D in box 7 and a blank in box 14 for state distribution.  Why is it taxable in 2019 when it was not in 2018?  On the PA schedule w-2s for 2018 the code in column B is an I and on 2019 PA w-2s it is a K. Why? Is the 2019 tax software wrong?

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6 Replies
MarilynG1
Expert Alumni

PA 1099-R problem Income should not be taxable

You are correct that Pennsylvania does not tax certain Retirement Income.

 

Click this link for more info on Taxable Retirement Income in Pennsylvania. 

 

Check your entry for your 1099-R. 

 

Click this link for info on How to Enter a 1099-R.  

 

 

 

 

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PA 1099-R problem Income should not be taxable

Thank you for your response. I have checked all those things several times.  What i need to know is why turbo tax treats it differently in 2019 from 2018.  If it wasn't taxable last year it should not be taxable this year. how do i make the software treat it the same a s last year?

MarilynG1
Expert Alumni

PA 1099-R problem Income should not be taxable

TurboTax is treating Retirement Income the same in 2019 as in 2018.

 

Since we can't see your return in this forum, you may want to speak to someone who can look at your forms and entries.

 

Click this link to request Phone Support or How to Get a Live Review 

 

Did you try Deleting/Re-Entering your 1099-R? 

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PA 1099-R problem Income should not be taxable

Thank you for your help. I think I figured it out . I went back and looked at the input for my 2018 return.  In  2018 I think the default State type code was different and I just accepted the code.  I would not have known to change it.

aoraines114
Returning Member

PA 1099-R problem Income should not be taxable

per my 1099 R it is telling me i owe tax on a rollover account

BillM223
Expert Alumni

PA 1099-R problem Income should not be taxable

Are you talking about a rollover being taxable on your federal return or on a Pennsylvania return (the question you piggybacked onto)?

 

Tell us what the distribution code is in box 7 of your 1099-R, and tell us if you received the money, and did you place it into another retirement account within 60 days? Please give us the details of what you did and what you entered.

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