This same thing is happening on my Georgia pension. It is from a private business not a state pension, but on my 2019 return it showed the pension amount on line 4C, then showed the taxable amount on line 4D as zero. This is on the federal form 1040. It didn't add this amount to my adjusted gross income and I wasn't taxed on it, It then also showed the lower amount on my Georgia state taxes, so I wasn't taxed on it by the state either. In 2020 nothing has changed, but on line 5A, pensions and annuities, it is left blank, but line 5B shows the full amount as taxable. My adjusted gross income is now much higher and I'm being taxed for it on both ends. Either last years was calculated incorrectly or this years is. It is also a sizable difference. The pension fund has never taken out any taxes on my pension so on the surface it seemed like it wasn't intended to be taxed.
