pa preparers-help

[theresa d]

client received a distribution from pension plan prior to retirement age. it should be taxable for pa however my software is not picking it up on pa. what line would it go on the pa 40?

[KBTS]

Information from the 1099 goes on PA Sch W-2S in part B. This should then flow to line 1 of the PA-40 as part of gross compensation.

[theresa d]

thanks so much

for the quick response!!

[John of PA]

Pension Not Taxable In Pa

client received a distribution from pension plan prior to retirement age. it should be taxable for pa however my software is not picking it up on pa. what line would it go on the pa 40?

Pension income, IRA withdrawls, or any other type of retirement plan type income is not taxable for PA state income tax purposes. You can totally ignore this income for the PA state return. Your software is correct.

[Unregistered in Pa]

Pensions ARE taxable to the state if taken out before retirement age. Locals too for that matter. Sorry to be so abrupt to your reply John. KBTS was correct.

[BP.]

Distributions taken before retirement may be taxable to PA to the extent the distribution exceeds any previously taxed contributions. They are not taxable on the local return.

[John of PA]

Thank You

Pensions ARE taxable to the state if taken out before retirement age. Locals too for that matter. Sorry to be so abrupt to your reply John. KBTS was correct.

Thank You for the clarification, I did not realize that we were talking about pre-retirement distributions.