Wh does turbotax want me to file a nebraska state return if my annuity is based in nebraska?

What matters is where you received the annuity income—not where your annuity is located. Here are some possibilities why TurboTax may be requesting you complete a Nebraska income tax return:

1. Perhaps you entered Nebraska income taxes withheld from your annuity. Check if you entered any Nebraska withholding or if you entered a state code in form 1099-R Boxes 14, 15 and 16.
2. Perhaps you indicated that you made income from other states and entered Nebraska.

I would delete the 1099-R form and re-enter it. 

• If you're using TurboTax Online software and need to delete a form, click here.
• If you're using TurboTax CD\Download software and need to delete a form, click here. 

Your taxable amount depends on which type of plan you withdrew from:

• There are several different retirement plans, each with their own rules on taxing withdrawn income.
• On plans like Traditional IRAs and employer pensions, income tax was deferred when you contributed, which means that you’ll now pay tax on the distributions.
• With plans like Roth IRAs, however, income was already taxed during contribution, and so isn’t taxed now.
• Qualifying rollovers might also not be taxed, but you still have to report them on your return.
• Just enter your 1099-R as it appears and answer a few questions—we’ll figure out what, if anything, will be taxed.