Retired and live in PA & no state tax withholding _Box 16 on 1099R with amount - no amounts showing on state return-

[sugersam5]

Hello,

 While doing the 2024 in TTax, this was noticed on 2023 Return (below) and wanted to assure 2024 that will have the same status is good with State:

>Over 59 1/2

>Lived in PA (all of 2023 -and many years prior)

>Income comes from IRA (Rolled over from 401k in 2023_ Concern is not with 1099R for the Rlvr, just the IRA Rlvr when started to withdrawal as my income to live on)

>Received a 1099R

>Box 16 on 1099R = Amount$$

>State Return showed no amounts_ On PA-40, boxes 1a to 36 all zeros

>Elected no PA tax withholding - per PA one with my status does not pay state tax

Q:

Was TTax correct to not show what was in box 16 of 1099R on PA-40 (on the first two pages, which contain personal info and data/amounts, hence lines 1a - 36)?

I understand there was no state tax applied and perhaps why. Also, the amount from box 16 does appear on pg 2 of PA-40, under "Compensation from Fed. Form 1099R", which I think this tells state what was in box 16(?)

I may be wasting your time and have answered myself, but, hey, let me just take a few minutes so I can be a bit more assured.

Much thanks!

Micheal_

[MaryK4]

You are correct that the Rollover is not taxable compensation for Pennsylvania.  (It would also not be taxable to you because you are eligible for retirement payments).  TurboTax uses the Box 16 designation to assign the income to Pennsylvania.  

Payments received from an eligible Pennsylvania retirement plan which are rolled over into another plan, where the transferred amounts are not includable in income for federal income tax purposes are not included in the plan participant’s taxable compensation.  See Federal Form 1099-R Reconciliation for Pennsylvania Personal Income Tax