The TurboTax article cited in my previous reply to @tfbill6 was edited on April 3rd, and I see that it says that Utah fully taxes military pensions, which is not technically correct. I am reporting the article for review.
What is different about the way Utah treats military pensions is that Utah requires you to report your military pension on the state return. Then, Utah gives you a credit on the amount, not to exceed your tax liability. You can read more at Utah Military Pension Credit.
In addition, Utah has a Retirement Credit. Utah taxpayers can claim either the Military Pension credit or the Retirement Credit if they qualify, but not both.
When you enter your Form 1099-R in the Federal section, check to see that you identified it as a military pension where that question appears. Having identified the pension as military in the Federal section should cause TurboTax to calculate and apply the Utah Military Pension Credit to the state return.
After you have finished making entries in the Federal section, complete your Utah state return. Answer all of the questions that appear in the Utah state interview, in order to get any other credits that only apply to that state. TurboTax will prompt you for the information needed to calculate the credits.
See also this thread for another discussion of this issue.
You can preview your return before filing to review the forms and worksheets that TurboTax has prepared from your entries and to find out how your taxes were calculated. See here for details.
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