Enter your 1099-R in the Federal section of TurboTax, since it is taxable at the Federal level.
After you have finished making entries in the Federal section, complete your Utah state return. Answer the questions that appear in the Utah state interview. The way that Utah exempts your military pension from tax is different than the method in some other states. Utah requires you to report your military pension. Then, Utah gives you a credit equal to the tax liability on the amount, not to exceed your tax liability. You can read more at Utah Military Pension Credit.
See this TurboTax tips article for more information on state treatment of military retirement. Utah is one of twenty-six states that have an income tax but don't tax military retirement.
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