TurboTax is telling you that because they haven't fixed a bug in their program(s) for 3 years now. The so-called fix is detailed earlier in this discussion thread and involved going back to your Federal returns and towards the end of the 1099 form for State pension income telling TurboTax that the income comes from the U.S. Government. Then go back to your State return and things should calculate okay. I guess.
