It could be (and probably is) correct. Civilian pay is not military (active-duty) pay, even on behalf of the Department of Defense. However, if you were still in the military in Germany with active-duty income, then your PCS move is, in fact, considered to be your "last" active-duty assignment and is also categorized as military pay. If these are your facts and circumstances, then the income from the move should be exempt from Oklahoma tax, since you were a Florida resident prior to arriving in Oklahoma (and Oklahoma would exempt military pay anyways).
However, even if it is not the case, there is a good argument that the income is exempt (or at least partly-exempt) from Oklahoma tax. Since you were considered a Florida resident while in Germany, the pay for the move to Oklahoma is either entirely Florida income, or at the very least split 50/50 between Oklahoma and Florida (50% income for leaving Florida, and 50% for moving to Oklahoma).
Your question states that you were stationed in Germany, which sounds like you were, in fact, active duty. Unless there is additional information, I believe TurboTax has calculated this correctly and the income is exempt from Oklahoma tax.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
