TurboTax Online Arizona not adding federal pension exclusion

[lywaz]

The desktop version of TurboTax, Arizona automatically adds in the federal pension exclusion. The online version when working on the state return does not; I have had to add it manually as another subtraction to income. I have checked how the 1099-R (CSA) was entered and all the info is correct. Seems like a bug to me. Adding it manually gives me the correct end result, but the exclusion will show up on a different part of the 140 form - is this ok?

[AmyC]

Maybe but I would prefer you be more audit proof. I am going through the online version. I started in the federal 1099-R(CSA) and the program asks where is this 1099-R from? I selected the top option that covered most things. Periodic payments.

Next I moved to AZ and continued through it to Government Pension deduction summary where my pension was listed with the subtraction.

You need to go back to the federal and verify your distribution taxability and review your answers. The state section of the form must be filled in.

In the federal section, right after entry, make a selection for distribution. 

[lywaz]

The federal screen you showed, that's exactly what I did. Yet when I went to work on the state taxes, the exclusion did not show up. On the desktop version (yes I have both) I had a screen essentially saying "we added this exclusion in for you". Nada on the online version. Do I need to delete the form and try again?

[LeticiaF1]

As AmyC mentioned in TurboTax Online there is a question in the federal section for you to select what type of distribution it is.  There is another question in the state return, that will ask for the amount of the government pension deduction, enter the amount there.  

@lywaz 

[lywaz]

What can I say ... I never saw this screen. It works as advertised on the desktop version. I followed the same steps on the online version (including clearly saying what kind of distribution it was) and when working on the state it just skipped over that and gave me no exclusion. I went ahead and added it as another subtraction with a explanation that it didn't get added to the appropriate line on the Arizona 140 form. Probably should have deleted the 1099 and re-entered it, might have worked then; I entered it into the system when I got it back in January. But due to some time constraints I went ahead and filed with it as an additional subtraction, and the state (so far) accepted my return. If they complain about it later then I'll try to amend the return and refile. Thanks for confirming for me at least that it worked for you.