issues with transferring correct retirement distribution code to PA state form

[jiehall]

For some unknown reason, this year when I transfer my retirement income to the PA state return, it doesn't allow me to say that my state pension is NON-TAXABLE on my state return. I have not had this problem in previous years. I have gone back and "edited" the data for this 1099-R on the federal return (which the state return says I have to do), but it makes no difference; PA state software still thinks my non-taxable state pension is taxable by PA. Any suggestions ?

[ErnieS0 · Accepted solution]

TurboTax Online still includes the screen to indicate your state pension is not taxable to Pennsylvania.

1. In the Pennsylvania section, go to What kind of retirement income do you have from Pennsylvania?
2. You will see a box for State Type Code.
3. he top choice is PA school, state, or muni employee plan. Choose that one.

[jiehall]

Thank you.  This screen wasn't  easy to locate in the PC version of Turbo Tax, but once found and utilized, the problem was resolved. 

[erniemanwv]

In Federal return 1099-R Box 7 I entered code 7, and in PA return I checked Eligible plan (no Pa tax) but my pension still shows up on line 1 of PA return, and Turbotax calculates PA tax on the pension.  I have two IRAs and one pension.   Is that causing Turbotax to choke? 

[jiehall]

I'm sorry, but I don't know the answer to your question as to why the PA state form is choking on your data. You might try going back into the state package, and then not using the interview mode, but going to "Show Topic List" (this is located on the menu bar at the top right of the screen),

Show Topic Listand then scrolling down to choose under 3. State Taxes > Pennsylvania > Income and Adjustments >

and then for EACH Retirement Income entry, confirm that it is indeed coded as non-taxable income in PA.

[annbarnhart]

I cannot locate how to find where to mark my pension in Pennsylvlania as non taxable  This should have been a non brainer.    I have spent several hours on this.  I might as well have filled out a paper copy.  Will not be purchasing Turbo again next year.  It sucks!!!

Ann Barnhart-Mazufr

[DaveF1006]

If you entered retirement information in Turbo Tax, you will need to prepare your Pennsylvania state return in the state taxes tab. As you begin you return, you will reach a screen that asks what kind of retirement income do you have from Pennsylvania. Here you will select a drop down to select the type of retirement income you have. Here is what the screen shall look like. 

@annbarnhart 

[annbarnhart]

Since I selected that I would enter my data instead of going through questions, I cannot get the screen to come up that asks "What kind of retirement inome do you have from Pennsylvania".   I went to the 'Show Topics List" but am not getting to that screen.  This is totally frustrating.  I am not going to be able to do my PA State Tax using Turbo Tax, which is what I paid for.  I cannot override the numbers in the PA State Tax form to delete the amount of PA State Pension that is not taxable.  This should have been easy to do but according to the comments on the internet, other people are voicing the same problem.  

[annbarnhart]

This did not work for me.  I did another post about this.

[DMarkM1]

Go back to your PA interview and "Edit" Pennsylvania and "Continue."  You should be on the summary page that says "You've finished your PA return" and shows the sections, General Info, Income and Adjustments, Taxes and Credits, etc. 

 If not you need to click through the PA interview to get to the end of the section so that you end up on the PA summary page with all the sections listed.  (see screen shot below). 

Once there on the summary page,  you will "Update" the Income and Adjustments section.  One or two pages in, you should arrive at the page "What kind of retirement income do you have from PA?" (see screenshot below).  Use the dropdown to select the appropriate category for your retirement income situation. 

 

[ginnyleonetti]

I completed my federal taxes, as in the past, I went to complete my PA State form and none of the retirement information was transferred to my PA form.  What happened?

[BillM223]

"none of the retirement information was transferred to my PA form. " Could you clarify which PA form you are talking about, the input screens or the output tax forms? Also please tell us which information was not transferred to your PA form.

The way it should work is this:

The first paragraph on the page "What kind of retirement income do you have from Pennsylvania?" states, Pennsylvania needs us to get really specific about the kind of retirement income you're receiving from XXXXX, where XXXXX is the name of the payor of the first 1099-R.

After you enter the State Type Code, you hit Continue. Then, instead of going to a new page, you go to a page that is identical, except that the payor's name (XXXXX) is changed to the name on the second 1099-R.

This continues until all the 1099-Rs have been processed. This is how you tell TurboTax is each pension or retirement distribution is taxable or not in PA.

If you meant something else, come back and tell us.