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State tax filing
Nothing has changed. You are correct, Pennsylvania (PA) does not tax normal pension distributions at retirement. You can file only your federal return as e-file, not the state (unless you have other income to file for PA).
However to fix this in the PA interview you must select in the Form 1099-R the following dropdown selection as shown in the image below.
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ā€ˇFebruary 9, 2021
7:18 AM