state of CT pension exclusion

I am under the age of retirement and under the threshold of $75,000 for the CT state pension exclusion. This is usually a deduction for CT residents. MY 1099-R has a distribution code of 1 ( early withdrawal). The software is still deducting the pension money I took out of the account.  Is this correct?

 

I would think I would have to pay taxes to the state considering I am not of retirement age but I do not see any stipulations regarding age. 

 

any suggestions?