Thank you again. I could not find a screen titled exactly "Taxable Pension May Need to be Adjusted." However, I went through the interview several times changing numbers but not getting a correct result. I was able to eliminate both the subtraction and the pension exclusion one time which is not a good result! All the entries on the 1099-R are correct and I have to use these entries. Turbo Tax recognizes the correct taxability of the pension in light of the contributions. For some reason it is not properly eliminating it from the pension exclusion computation. It still appears to me to be a software error. I think the best fix is to allow the user to edit the pension exclusion worksheet instead of just allowing the automatic calculation. I have sent a couple of comments to Turbo Tax without any response. My only solution may be to override the exclusion calculation and file a paper return. Thank you again for your assistance. Your help has motivated me to see if I can help someone else by answering questions!
