Students interested in this college are also interested in: Colorado State University, University of Washington, University of California, Berkeley, University of Oregon, University of California, Los Angeles, University of California, Santa Barbara. Overview.
These plans areexcluded from tax on your federal return, but not onyour state income tax return. Once you retire and beginto receive pension benefits, you will pay federal tax onyour retirement payments, but you will not pay PA taxon those benefits.
Therefore, if your retired pay is taxable so is any CRDP payments you receive. If your retired pay is non-taxable, your CRDP is also non-taxable. Former Spouse Deductions: The retiree is not liable for taxes on payments made to their former spouse.