For 2019 AZ returns, there should be TWO choices for the pension reduction. Federal/State retirees get a $2500 reduction; Military retirees get a $3500 reduction; If you have both types of retirement, then you get both amounts reduced from your AZ state taxable income.
The other answer on this thread is from a TurboTax employee, who can now perhaps clarify how to activate Military vs. Federal/State amounts ...
