The state of Michigan does not tax my pension, and yet TurboTax is included it in my income, why?

[BillM223]

The first thing to do is make sure that TurboTax knows that your home is in Michigan.

The second thing is to enter the 1099-R data. Does TurboTax then ask you the source of the data? It should, because this is how most states handle things like pension exclusions (i.e., it's entered on the federal and not on the state).

Did this happen to you when you entered the 1099-R? If not, go back and revisit the 1099-R interview.