I am very frustrated about Turbo Tax for Alabama state tax filing. For several years I have called in to help desk to comment on the issue of pension income added to state income tax. My pension, which is a defined benefit plan, is from a non-qualified plan managed by Fidelity. I get a W-2 instead of a 1099R since it is for a non-qualified plan. Even though this is not taxable in Alabama, it is almost impossible to get the income removed from my state tax return. I also do taxes for my brother in Pennsylvania, and Turbo Tax for PA has a very simple process to remove qualified pension income from taxable income. Why can't Turbo Tax replicate this simple process for Alabama?? I have to enter zero for taxable income on the W-2 entry, and then skip the State tax check to keep Turbo Tax from adding this pension income back to the total taxable income.
Has anyone come up with a better solution>
