It is a two-step process. First, double-check all of your entries in the 1099-R section of the Federal Return. It is especially important that the box 7 code (which should be a 7 if you are over 59 1/2) is correctly entered into TurboTax.Next, carefully go through the Pennsylvania return screens. You will come to one that asks you What kind of Retirement Income you have from Pennsylvania? If you are over 59 1/2, you will need to select that option from the drop-down box. Here is what the screen will look like: Please note that if you are under 59 1/2, your retirement is still exempted if you have the correct code in box 7 and the correct type of pension is marked in the screen below.

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My pension is not taxable. I have never paid state tax on it. Why would it be taxable now? Did I miss a spot to check something?

Forum|Forum|7 years ago
June 5, 2019
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Best answer by DanielV01

It is a two-step process.

First, double-check all of your entries in the 1099-R section of the Federal Return. It is especially important that the box 7 code (which should be a 7 if you are over 59 1/2) is correctly entered into TurboTax.
Next, carefully go through the Pennsylvania return screens. You will come to one that asks you What kind of Retirement Income you have from Pennsylvania? If you are over 59 1/2, you will need to select that option from the drop-down box. Here is what the screen will look like:

Please note that if you are under 59 1/2, your retirement is still exempted if you have the correct code in box 7 and the correct type of pension is marked in the screen below.

DanielV01

Employee

What is your state?

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N

northsho103Author

Pennsylvania

DanielV01Answer

Employee

It is a two-step process.

First, double-check all of your entries in the 1099-R section of the Federal Return. It is especially important that the box 7 code (which should be a 7 if you are over 59 1/2) is correctly entered into TurboTax.
Next, carefully go through the Pennsylvania return screens. You will come to one that asks you What kind of Retirement Income you have from Pennsylvania? If you are over 59 1/2, you will need to select that option from the drop-down box. Here is what the screen will look like:

Please note that if you are under 59 1/2, your retirement is still exempted if you have the correct code in box 7 and the correct type of pension is marked in the screen below.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"