Your military retirement pay reported on the 1099-R is exempt from Hawaii tax, but is taxable at the federal level. To receive the Hawaii exemption, as you are entering your 1099-R in the Federal section, look for a page titled "Where is this distribution from?" Be sure you select 'Government of military pension'. (See first screenshot below.) When you get to the state section, you will see a pension deduction for your military pay. (See second screenshot.)
If you are receiving disability pay from the VA, the disability pay is not taxable on either your federal or state return. You will receive no tax document, and it is not reportable.
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