If your annuity distribution, 1099R, box 7 is coded with a "D", such as 1D, 4D, or 7D, then the distributions are from a commercial annuity and are subject to PA personal income tax. Only retirement plans that meet certain criteria are not taxable by PA. Most employer retirement plans and all IRAs meet the criteria. The amount in box 2 of the 1099R would be reported as interest on PA Schedule A.
See: https://revenue-pa.custhelp.com/app/answers/detail/a_id/1470/related/1/session/L2F2LzEvdGltZS8xNTQ2O...
In past years, TurboTax would ask, for each 1099R entered, as to what kind of income is represented by each 1099R. Select "annuity"
