Yep, you were told right. But I don't think it would matter for state taxes. Only federal taxes. If I were you, I'd consult with the base legal office on a base closest to you, that is in your state. They have tax-pros there this time of year that would be most familiar with the state tax stuff. Heck, if there's an RAO (Retiree Activities Office) on that base or near by, my bet is they have tax pros there too. That would be even better!
But bottom line is, on the federal taxes you were told right.
