Why does Turbotax show that I owe Kansas State Taxes on my Thrift Savings Plan distributions; when TSP was added to the Board of Regents Approved List of non-taxed items?

[MichaelL1 · Accepted solution]

Go back into the Federal return on the 1099R for the TSP.

Click on EDIT on the TSP 1099R, then after the 1099R keep going through the questions until you get to:

screen titled, "Where IS This Distribution From.?"   The top box, Federal Retirement or Disability Benefits, must be checked and then TurboTax will correctly handle it on the Kansas return.