How do I report the taxable income of a non-qualified variable income (for 1099-R Code 7D) on my PA Sate return?

Forum|Forum|2 years ago
February 10, 2024
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I received a form 1099R form for a non-annuitized distribution from a nonqualified annuity. This money is all taxable as indicated in box 2a and comes with a D distribution code in box 7. The money is supposedly also taxable in my state ( Pennsylvania) and I should be listing it as interest somewhere. Can anyone tell me where I can enter this on my PA state return? Thanks in advance.

Best answer by DianeW777

You are correct., Distributions from a commercial insurance or mutual company annuity (Code D also included with Code 7) purchased as a retirement annuity are not distributions from an eligible employer-sponsored retirement plan and are taxable as interest income to the extent they are included in federal gross taxable income.

2023 Pennsylvania Personal Income Tax Return Instructions

When you are in the Pennsylvania (PA) tax return continue to the screen 'What kind of retirement income do you have from PA?'

Select from the dropdown 'Non-qualified deferred comp plan'.

TurboTax will automatically enter the interest income on the PA Schedule A.

DianeW777Answer

2023 Pennsylvania Personal Income Tax Return Instructions

When you are in the Pennsylvania (PA) tax return continue to the screen 'What kind of retirement income do you have from PA?'

Select from the dropdown 'Non-qualified deferred comp plan'.

TurboTax will automatically enter the interest income on the PA Schedule A.

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BernhardAuthor

Thank you but I can't see a screen titled "What kind of retirement income do you have from PA?'" If I switch to the actual PA tax form, I can see the correct Federal income for the respective 1099R and the corresponding State text box (to the right) that is empty and cannot be changed on the tax form. I am unable to enter the corresponding interest for PA . Perhaps something is missing where I entered the 1099-R as Federal income but I can't figure out what is missing ...

PatriciaV

Employee

You might go back and review your entry for Form 1099-R to be sure you accurately entered the State information for Boxes 14 through 16. These entries should trigger the question in the interview for your State return.

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