The screen you are seeing above doesn't concern the Military retirement exclusion for Virginia. The screen mentions a return of contributions that you had to make and got a deduction for Federal purposes. If you didn't have to return any retirement contributions last year, you can bypass this screen by clicking Continue.
Once you get past that screen, you'll get a screen "Here's the income that Virginia handles differently". On this screen you will want to enter the Military benefits subtraction. Since you lived in two different states last year, you will need to split the income between the time you lived in Virginia and the time you lived in the other state. For example, if you lived in Virginia only 9 months and had a military pension of $36,000 for the whole year, your military subtraction for Virginia would be $27,000 ($36,000 per year or $3000 per month, then $3000 x 9 months)
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