If it gives you the option to remove it in the review section, do so. The way this is is suppose to work is that military pay is not taxable in Illinois. Schedule M will show the income on line 21 but then subtracts it out. Before you remove it from the review section though, review your answers in the Illinois state return. Navigate to the section where it says military pay exclusion. Be sure the exact amount of his military pay is listed in that box.
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