What state for Non-qualified pension plan payment

[Mom4x]

I entered a W-2 for a non-qualified pension distribution. The pension is from a NY corporation but I live in AZ. When TT asks "Yes, I took this money out of my non-qualified pension or 457 plan", which state do I select? 

[BillM223]

Arizona.

Pensions are taxed by the state where you live, not by the state where the pension is coming from.

[Mom4x]

Yes, I know the DISTRIBUTION is taxed as ordinary income where I reside, but TT asks for a state designation (I’ve already entered my AZ info in the program) and I think the program is assuming it was from a (state) 457 plan… but it’s not. It’s a top hat non qualified pension plan. I have had this income for many years and this is the 1st year TT asking for a state…

[CatinaT1]

Select Arizona.