In the state interview section for Arizona, make sure you have entered the full amount as being part of Arizona income on the screen title "other income."

While the note says not to include pension income, this only applies to pension payments received from those who were part of a uniformed service in the United States as show in the excerpt below from page 7 of the AZ Form 140 instructions.

Finally, you should also review your input in the federal interview section for Form 1099-R. Select edit to the right of the applicable 1099-R form. Proceed through the screens until you reach the screen titled "Was this distribution from a 403(b) plan?" Make sure you have selected that the payment is not from a 403(b).

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