Alabama pension income

[slongfield]

I am very frustrated about Turbo Tax for Alabama state tax filing.  For several years I have called in to help desk to comment on the issue of pension income added to state income tax.  My pension, which is a defined benefit plan, is from a non-qualified plan managed by Fidelity.  I get a W-2 instead of a 1099R since it is for a non-qualified plan.  Even though this is not taxable in Alabama, it is almost impossible to get the income removed from my state tax return.  I also do taxes for my brother in Pennsylvania, and Turbo Tax for PA has a very simple process to remove qualified pension income from taxable income.  Why can't Turbo Tax replicate this simple process for Alabama??  I have to enter zero for taxable income on the W-2 entry, and then skip the State tax check to keep Turbo Tax from adding this pension income back to the total taxable income.

Has anyone come up with a better solution>

[Hal_Al]

I'm not specifically  familiar with AL rules or the AL TurboTax (TT) software.

But, a frequent reason for getting a W-2, instead of a 1099-R is because the pension is classified as a disability pension.  In some TT state software, you will be asked if you have disability pay. That will qualify for the state exclusion.

[slongfield]

Thanks but this is not my issue.  The reason my pension distribution comes on a W-2 is because it is a non-qualified pension, which is due to the income level I was earning while working for PepsiCo.  I had both a qualified and non-qualified pension at retirement.  I rolled over the qualified pension, and took an annuity payout for the non-qualified portion.  I talked to Fidelity several times about reporting the distribution on a 1099-R instead of a W-2, but they said it is IRS rules to report it on a W-2.  I also spoke to an Alabama department of revenue manager, and she confirmed that the non-qualified defined benefit pension distribution is not taxable to Alabama.  So the problem is with TurboTax, which for AL does not have a clear way to exclude income that is not taxable in AL.  Once again, I ask TT to look at the PA tax software which has a very simple way to identify income that is not taxable in PA.