Tax help for military filers

Let's go through this step by step;

1. Go back to the federal income section.
2. Scroll down to your 1099-R.
3. Edit
4. Continue
5. No to IRA
6. Continue
7. No to PSO
8. Continue
9. Select MD
10. Continue
11. Select active or reserve military retirement
12. continue
13. From a Non-Qualified Plan
14. Continue

Please review your state summary again as the information should have subtracted out the allowed amount based on your age.

Form 502SU, Subtractions from Income states:

Military Retirement Income. Individuals at least 55 years of age on the last day of the taxable year may claim up to $20,000 of military retirement income, including death benefits, received in the taxable year. 

Individuals under the age of 55 on the last day of the taxable year may claim up to $12,500 of military retirement income received in the taxable year.