Question

RMD from a Qualified Pension incorectly showing uner box 16 "State Disribution" on Form 1099-R

Forum|Forum|5 years ago
April 14, 2021
1 reply
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I received 1099-R from my employer's agent who processes rollover and distributions from the retirement plans. I retired last year and received 1099-R which (incorrectly) shows a required minimum distribution (RMD) amount on Form 1099-R, Box 16 (State Distribution) for the Pennsylvania State. Consequently, TurboTax is treating the Box 16 amount as state income and taxing me on this amount. This needs to be corrected because PA does not tax the income/distributions from 401(K) and qualified pension plans. How can I exclude this amount from the PA state income? Please help?

MaryM428

When you go through your PA return, there is a question:

What kind of retirement income did you have from Pennsylvania

Chose the correct answer, most likely it will be I'm eligible, Plan's eligible, (no PA tax)

That will keep the pension from being taxed in PA

K

Krish49Author

Hello Mary, thanks for your response.

I believe, I did answer the questions exactly as you suggested, but it seems Turbo Tax over-rode this info and still placed the RMD distribution amount from Form 1099-R into my PA state gross compensation & wages (Line 1a, PA-40).

I went back to the Federal return and zeroed the state distribution amount where you manually enter the data from 1099-R into TT. Surprisingly, despite this data entry change, nothing changed on my PA state return, which tells me that I can't remove/alter the data once I have entered into the turbo tax. Perhaps I am missing something or doing something wrong, I would appreciate any help around this problem.

MaryM428

There is a problem with the way your federal income transferred to PA.

Use the Chrome browser and clear browsing data for all time before signing into TurboTax.

Delete the PA state return.
Close TurboTax, sign in again, add PA again and this time the information should carry successfully.