How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask PDtax Your Own Question
PDtax
PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4308
Experience:  35 years tax experience, including four years at a Big 4 firm.
64119565
Type Your Tax Question Here...
PDtax is online now
A new question is answered every 9 seconds

Good Day... In a nutshell... I live in PA and next June

This answer was rated:

Good Day...

In a nutshell...

I live in PA and next June (when I turn 55) I will collect a pension from California.

Is the California pension taxable? Of
an approximately $1200/month pension, how much will I see? I am trying to determine if I should leave my current job then (and collect an additional pension) or stay....and...

Is a PA pension taxable (from my current job....also next June)? And...of an approximate $800/month PA pension, how much will I see?

THANKS VERY MUCH!!

PDtax :

Welcome to the site. I'm PDtax, and will be helping you today.

PDtax :

Pensions from a qualified plan are not taxed in Pennsylvania.

PDtax :

As long as you meet the age and other requirements for normal distributions from the CA plan, PA does not tax this income.

PDtax :

since you asked about the combination of your two retirement payouts, if you qualify for the same tax free payment stream from PA (qualified plan, reached the age threshold), that will be tax free in PA as well.

PDtax :

Thanks for asking at Just Answer. I'm PDtax.

PDtax and 5 other Tax Specialists are ready to help you
Customer: replied 3 years ago.


A clarification, please.....I understand there is no PA state tax on the pension income...is there Federal tax? I may not have worded my question as exactly as I wanted.


 


Thank you again

Yes there is Federal tax on both pensions. Your 1099-R will report the taxable portion each year.
PDtax and 5 other Tax Specialists are ready to help you