Select that you left the military.
Inactive reserves won't qualify for anything special since no W-2 will be earned for that part of the year.
If you did not return to your HOR state to take up residence/work/school, then you will indicate that you moved from your HOR state, to whatever state you ended up in after leaving service, on the My Info page. That usually requires two Part-Year tax returns for those two states....if both states have an income tax.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
