The PA Department of Revenue (DOR) does not make it easy for its resident taxpayers.
If you are a retiree and receive IRA, pension or annuity retirement benefits, that income, while taxable for federal income tax reporting purposes, is not taxable for the PA personal income tax (PIT). This is one reason why many retirees find PA an attractive state to reside in their retirement years.
What happens if the payer of the retirement distribution withholds PA PIT? In the past, the taxpayer would claim the withheld tax on his/her tax return and that tax withholding would be used as a tax credit against any other taxes due, or be refunded to the taxpayer.
The PA DOR has now taken the position [Read more…] about PA DEPARTMENT OF REVENUE 1099R NEWS