At “State Type Code” under the “What kind of retirement income do you have from Pennsylvania?” question, there are 18 selections, none of which appeared to match my lump-sum distribution from a non-qualified annuity with Transamerica Life Insurance Company. One at a time, I selected each of the 18 and hit “Continue”. Only 4 of the 18 gave me the result I needed, i.e., PA tax only on the gain from my contribution (my basis that was previously taxed). The selection that most closely seemed to match my situation was “Life insurance or endowment”; thus, I chose it, and proceeded without complication to a successfully-filed return. TurboTax should fix this part of their app to make it less confusing. The rest of the app was excellent.
