Active duty- regardless of who issued the order for title 32 or 10 -it is 100% deductible. When you enter your W2 in the federal section, be sure to mark that it is military. The program will carry it through for you.
Inactive duty - When you get to MO, as you go through, it will ask about your Inactive Military Pay Deduction. Enter the full amount. The program will multiply by 20% for you. Be sure to follow the directions to fax or email a copy of your LES.
I want to clarify. You have IAD written. Are you referring to National Guard Inactive Duty Training or National Guard Annual Training or something else?
MO state laws:
Military income deduction. Deduct the amount of military income earned as a member of any active duty component of the Armed Forces of the United States that is included in the taxpayer’s federal AGI and not previously taken as a deduction. Appropriate documentation must be attached to verify active duty status and the amount earned on active duty status.
New for 2020-Reserves and inactive duty military deduction. Military personnel may deduct a portion of their income earned from National Guard Inactive Duty Training, National Guard Annual Training, and reserve components of the Armed Forces. The percentage allowed as a deduction increases through 2024. The percentage allowed for 2020 is 20%. Appropriate documentation must be attached to verify training earnings and length of training status.
Related:
MO Military Reference Guide
MO Military Income Deduction
@Ilnicky007
[Edited 2/17/2021 |12:52pm PST]
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