When you get the 1099-R next year, it will have a different code(s). If box 7 has a code D, TurboTax will know that it is a non-qualified annuity. The gains portion of the annuity payments is reported as interest income on PA Schedule A. TurboTax will handle both the federal and PA tax return based on those codes, but you can always visit the Community if you need assistance! After-tax earnings have already been taxed, so you don't get taxed again.
1099-R Box 7 codes and their meanings
Code D - Annuity payments from nonqualified annuities and distributions from life insurance contracts
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