Up to $5,000 of military retirement income is excludable from your Maryland taxable income.
To report this subtraction in TurboTax, enter Form 1099-R in Federal > Wages & Income > Retirement Plans & Social Security > IRA, 401(k), Pension Plan Withdrawals (1099-R). After entering it, TurboTax will ask Where is your distribution from? Answer Active or reserve military retirement. This will apply the subtraction to your Maryland income.
