Is anyone having a problem entering EXEMPT in box 14 on a 1099R? I am not able to enter this, as it seems to only want to accept a numerical amount

[ToddL99]

Leave Box 14 blank if you are exempt from state withholding for this payment (or distribution).

The preparer of your Form 1099-R entered "EXEMPT" as a courtesy to let you know (and have a record) that you are exempt from state tax withholding. 

Since Form 1099-R only uses Box 14 to report the amount of state tax withheld from your pension-retirement plan, the only valid entry for tax calculation or filing purposes would be numeric.  Any other type entry would not be compatible with tax preparation or electronic filing purposes.

[danroth63]

but the amount of distribution is getting added to my state taxable income and shouldn't be

[JulieS]

Please clarify your question. What state are you filing and why is your distribution exempt?