In your response you indicated that if Box 7 on my 1099-R has Code 7D, then that income is taxable in the state of Pennsylvania. I agree with that. What I don't understand is why Turbotax doesn't automatically add that income to my PA filing. This same issue happened last year, and I ended up having to pay back taxes plus interest and penalties. This is an error in the Turbotax software that needs to be fixed!
