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March 24, 2025
Question

Local tax on retirement in PA.

  • March 24, 2025
  • 1 reply
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In box 7 on my 1099-R form shows "2" which is early retirement. Do Pensions get taxed in PA for state and Local taxes? I thought PA and local don't tax pensions?

1 reply

DaveF1006
March 24, 2025

Yes, according to this PA reference, Pa will tax distributions on early retirement. It is taxed as severance pay.

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