Hi,
If a military member (active duty for more than 90+ days, code 38 on VA form 760) has a basic pay of over $30k, but then contributes to the traditional TSP such that their box 1 w2 income is below $30k, are they eligible for this subtraction? Last year turbotax seemed to thing the answer was yes, and did this automatically for us (without asking us). This year it seems to have decided that the answer is no, and isn't applying it. Which one is correct, and if the latter, do we need to amend last year's state return, and will turbotax pay the penalties and interest since it's the program's doing?
