Pa State Income tax.
Prior to April 15, 2019, my financial advisor suggested that I fund a Roth IRA. He opened a new account for me but he made a mistake and opened a traditional IRA. I didn't notice the mistake and deposited $6500 from my checking account into the new account. These funds were previously taxed. My advisors office staff caught the mistake and made a distribution of $6,502.18 to correct it. My 1099-R shows a gross distribution of $6,502.18 [box 1]. Box 2a Taxable amount shows $2.18.
Turbo Tax is showing the entire amount as taxable on my PA state return.
How do I fix this
You'll need to sign in or create an account to connect with an expert.
What code is in box 7?
Box 7 is code 8.
I also do not understand how an IRA distribution is taxable in PA. PA does not allow a deduction for IRA contributions. IRA contributions are taxed as income in PA.
@Locator2020 wrote:
Box 7 is code 8.
I also do not understand how an IRA distribution is taxable in PA. PA does not allow a deduction for IRA contributions. IRA contributions are taxed as income in PA.
A code 8 is a "return of contribution" and should be treated as if the contribution never happened in the first place.
Only the box 2a (the earnings that were also returned) is taxable an should be on the 1040 form line 4b.
If you previously entered the $6,000 contribution in the IRA contribution section - remove it since that contribution was returned and never occurred.
I don't know about PA but I suspect that the contribution was not removed from the IRA contribution section.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
hartski1
New Member
mdberes
New Member
de3852
New Member
jignesh123
Level 1
just2cruz
Level 1
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.