I went even further and in Forms view and on the F107 Worksheet changed the distribution code from 2 to 7 and checked the box. It did not show it as an error but continued to list the pension as MS taxable income. I was hoping to leave the code as 2 on the federal side and just change it to 7 for the MS return. It still considered it taxable. The only way to remove it as income in MS is to change the distribution code from 2 to 7 on the Federal side/return. This is not acceptable to me as it is not a correct representation of my 1099-R. There is definitely a glitch in the Turbo Tax software.
