I am filing taxes for a family member and they have a sizable amount of investment income in 2021, as well as some margin interest. Both the internet and my tax software made it clear that I can deduct this margin interest on my federal return, but I can find no definitive answer to whether this applies to the Pennsylvania state return.
As the margin interest is over half the total investment income, this makes a substantial difference to our total tax liability. In such difficult times this isn't something we want to pay if we can help it, but I also don't want to get things wrong and have penalties accrue on such a large number.
Can margin interest be deducted on Pennsylvania state taxes?