It appears you may be mixing two different deductions. The VA deduction for "Active Duty Military Pay" is still in the VA state interview for up to $15,000 of active duty pay for VA residents if they served on active duty 90 days or more. The interview question asking if the taxpayer served over 90 days on active duty appears in the VA state interview after entering a military W2 in the federal interview and indicating on the follow on page "Uncommon Situations" that the W2 is "Active Duty Military Pay." The deduction as described is reduced $1 for every $1 over $15,000 of active duty pay.
There is no VA deduction for "Military Retirement Pay" received by taxpayers under age 55.
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