Turbo Tax says my Massachusetts pension is taxable by Mass. How do I change this in my Federal Return so it will be correctly non-taxable in my Mass. state return?
The standard procedure is to enter the 1099-R in TurboTax exactly as it is printed on the paper form.
Generally the additional questions you answer during the TurboTax program will fill this information at a later time. Whether or not your state actually taxes that amount is handled during the following interview questions when you select the source of your 1099-R.
After you enter your 1099-R, TurboTax will display a screen Massachusetts Special Handling About This 1099-R.
Mark the appropriate category of pension and TurboTax will not include the pension in your MA taxable income. (See the attached screenshot below. Click to enlarge.)