Hi all,
Hey, I was wondering,I retired last year from general motors at age 54. They were relocating from Delaware to Illinois. I decided to take the buy out. So, in January of 2011, I started getting about 2700.00 monthly for my retirement package, totaling about 34k. I know I have to pay the federal taxes on this, but it is a code 2 in box 7, which says I do not have to pay a penalty. But... and here is my question... is this income taxable income in the state of Pennsylvania, or,. it is only about a 1k swing, but a penny saved... thank you for your time. Amy

If you live on Pennsylvania, then, yes, it is taxable by PA.

Thank you once again. Your help is much appreciated... until we need again. Thank you, smy

Glad to help!