bstaxes Posted April 10, 2009 Report Posted April 10, 2009 tp worked in NY and lived in NJ, received pension from teacher's union of NY (so far not a problem). Tp moved to Pa. After reading pa instructions I believe the pension is tax free but it is not from a pa teachers pension fund. In order to be tax free must it be from a pa fund or can it be from an out of state fund? Have a Happy Easter. Quote
MDCPA Posted April 10, 2009 Report Posted April 10, 2009 tp worked in NY and lived in NJ, received pension from teacher's union of NY (so far not a problem). Tp moved to Pa. After reading pa instructions I believe the pension is tax free but it is not from a pa teachers pension fund. In order to be tax free must it be from a pa fund or can it be from an out of state fund? Have a Happy Easter. This is from the PA Department of Revenue's website: "Is retirement or pension income subject to Personal Income Tax? Question: What retirement or pension income is subject to state and local taxes? Answer: As long as you retire and receive distributions from a qualified pension plan by either meeting a years service or age requirement in the plan, your retirement income is not taxable for state purpose. Local taxes are not administered by the Pennsylvania Department of Revenue but by local taxing authorities. You will need to contact your local tax authority for assistance. If you do not know who your Local Tax authority is, this information may be obtained by visiting the Department of Community and Economic Development web site at http://munstatspa.dced.state.pa.us/Registers.aspx" Additional help at www.revenue.state.pa.us/ - click on Individual taxpayers, then on commonly asked questions and then search for pension - hope this helps. Quote
MDCPA Posted April 10, 2009 Report Posted April 10, 2009 There is also a definition (at the site mentioned in post before) explaining what a qualified pension plan is. Quote
rickart Posted April 10, 2009 Report Posted April 10, 2009 One clue is to look at the information return TP got from plan. Quick & dirty: Qual plans generate 1099Rs; Non-qual generates a W-2. [i get one of each from my former employer.] Quote
bstaxes Posted April 10, 2009 Author Report Posted April 10, 2009 Thanks, it seems that I am second guessing myself. Thought it was nontaxable. Appreciate the confirmation. Quote
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