More than likely your defined benefit retirement plan is not taxable in Alabama. The following are not taxed by Alabama:
Social Security, military, civil service, state/local government and qualified private pensions are exempt. All out-of-state government pensions are tax-exempt if they are defined benefit plans.
For more information, see page 7 of: http://revenue.alabama.gov/incometax/2016_forms/16f40bk.pdf for a list of types of income you do NOT report in Alabama.
If your retirement plan is not taxable by the state of Alabama, then the software will not count it as taxable.
FOr past 11 years my Alabama private pension has not shown as being taxed on turbotax. Now this year it is included in taxable income. How do I get it to again be not taxed as it is a defined benefit retirement plan.
It depends. When you enter the the information in your federal interview, be sure to indicate that this is a qualified plan when it asks what kind of a retirement plan it is. This is the first step.
The second step requires you to do the following.