I am retired. MY pension comes in two parts--a 1099R and a W2. I entered the income properly on my Federal return. It puts the income in the right places and I completed the Federal return with no errors. However when it transfers the income to PA return it treats it as interest and it calculates my state taxes by multiplying the entire amount by 3.07% our state tax on income. In PA Im not supposed to get taxed on the 1099R. Only the income shown on the W2.
