I found an error in the Turbo Tax calculation for state filing for 2025.
Oklahoma is supposed to not count military pay as taxable. I enter the military pay but I'm taxed as if it is taxable. So I end up owing a large amount to the state.
My issue:
I made $3K in non-military pay (taxable income), and about $50K in military pay (non-taxable income). Turbo Tax is telling me I owe the state of Oklahoma over $1700 in state taxes (over 50% of my taxable income). That doesn't make sense and its not logical. I entered it as military pay, but Turbo Tax is mistakenly counting it as taxable income. The only way I can get around it is to deduct the $50K in military pay from my total income for the state (basically not report it on the state filings). It makes me think that in past years I've been overpaying the state taxes.
