Thank you for the response. The guidance article you referenced relates to "elective deferrals". As mentioned in my post this was not a deferral that I made, so this does not apply. This is a distribution from a pension plan set up by my company where a benefit in the form of an annuity is paid out after retirement. As a side note, I also have distributions from a regular deferred compensation program where I deferred salary (elective defreral) and am now receiving the distribution. This is reported on a separate W-2 and this is being treated properly (taxed for both federal and state). If I leave box 11 blank, wouldn't that result in the compensation being reported on line 1 of the federal return, which would not be correct, since this is pension income?
It seems like the software program should allow the user to exclude the income on the state side of the tax program (similar to income entered for a 1099-R) and not produce errors. Unfortunately this is not the case.
