State tax filing

Try the following steps.

Go back to the Federal section of the program.

1. Select Income & Expenses
2. Select "IRA,401(k), Pension Plan Withdrawals (1099-R)
3. Select "Edit" under the appropriate 1099-R form
4. Proceed to answer through the screens until you see "Select Your State".  (You should see this after enter your details from the 1099-R, and the question asking if you are a public safety officer.
5. Be sure to mark the box for PA here.

The next screen should take you through specific information related to PA.

If you still receive the error, go into the state interview section for PA.

There is also a section you can answer within the Pennsylvania state section where you can indicate the income is not taxable. 

At the arrow, under state tax code, you will select the option "I'm eligible, plan's eligible (no PA tax)".  This will ensure your retirement is not taxed within PA.