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Level 2
posted Apr 14, 2023 8:39:49 AM

Stste tax on annuity payments from nonqualified annuities. There is a disconnect between the Federal Turbo Tax form and the State form.

On my Federal form for annuities in Turbo Tax, in Box 7, I filled in "D-Annuity payments from nonqualified annuities. But in the State form, the taxable amount was shown as "0". I know this is incorrect but the Turbo Tax program did not let me change it. The same problem showed up on two different nonqualified annuities,

0 5 817
5 Replies
Level 15
Apr 14, 2023 8:56:24 AM

Please clarify:  What state are you referring to?

Level 15
Apr 14, 2023 9:16:49 AM

in the 1099-R section, there should have been a question about it not being from a qualified plan. that needs to be checked.

 

Level 2
Apr 14, 2023 9:51:22 AM

The state is pennsylvania.

Level 2
Apr 14, 2023 10:07:59 AM

The state is Pennsylvania.

Level 2
Apr 14, 2023 10:40:12 AM

In the Retirement Income Summary in Turbo Tax, the following was shown:

Metropolitan   Gross 6390   Basis ---   PA Income 0

I clicked Edit and got:

Review your information about this PA retirement income of $0 received from Metropolitan.

If you need to make changes, or this doesn't seem correct to you, return to the federal retirement area to review your distribution codes. Then review this area of your PA tax return again.

THIS IS A RETURN OF EXCESS CONTRIBUTIONS FOR A PRIOR YEAR AND IS NOT TAXABLE.

 

I did as instructed and found that the distribution code in Box 7 of "7D-Annuity payments from nonqualified annuities" was correct and the PA Income of 0 did not change. But I know that PA Income of 0 is not correct.