You are correct - starting in 2016, MN stopped taxing military pension income.
MN has not yet approved the 2016 MN tax forms and instructions that are needed to exempt military pension income. The estimated release date for 2016 MN tax forms is January 27, and TurboTax will promptly update our tax software to implement the change.
See Forms
Availability Table for TurboTax State (except Business) for additional details and any changes.
