That is correct. VA benefits are not taxable on the federal return either, so they should not be entered in TurboTax.

Military retirement is taxable on the federal return, so it will transfer to the Ohio return with your federal AGI.

Ohio does not tax military retirement, including the spouse or former spouse's share. Therefore the Ohio form has a line for a deduction.

In the Ohio program you will reach a screen titled "Here's the Income that Ohio Handles Differently".

The first thing on that list is Retirement - Military and Civil Service Retirement Income. Click start. On the next screen, click Yes. On the next screen enter your "Military retirement income included in federal income".  It will be placed on line 28 of Ohio  schedule A as a deduction.

If you missed it, later, at the screen titled "Your 2018 Ohio Taxes are ready for us to check", you'll get another chance to enter it.