My apologies for not seeing that it was a 1099-R. Questions about the state pickup amount are normally asked about W-2s, so I just assumed...and you know what that means.
I am struggling to understand why there is an entry in box 17 on your 1099-R. Yes, the pension amount is included in federal income but not state income (since the pickup contribution was already subject to tax).
OK, I have found where TurboTax asks for this. Hmmmn, it's going to take me a bit to set up a test for this. In the meantime, you might go to the Maryland interview and look for the screen with the title "Taxable Pension May Need to be Adjusted". Try putting in the amount of the pension (Box 1 on the 1099-R) less box 17 (the pickup contributions).
If I am right, this will remove the pickup from being considered for the big pension exclusion while at the same time still letting it appear as the R subtraction.
Let me know.
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