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I am having this same issue with my MIL's Georgia return. I have followed your instructions, but the base military exclusion is still on the GA Schedule 1. I have reviewed the personal information, deleted the state return and started it over. Is there somewhere else to edit this? 

It may be if it is a Form 1099-INT. A certificate of deposit is a form of investment where you deposit money with a bank and they hold it until a predetermined future date and then release your funds back to you with interest earned. You would receive a Form 1099-INT each year you are earning interest to report the amount earned.  

Since your residence became a rental, tax software often struggles to reconcile the rental period (depreciation) with the military suspension of the 5-year rule. Here is why your gain is likely showing up on Schedule D and how to fix it in TurboTax Desktop.   There are two main reasons why a "tax-free" sale still hits Schedule D:   Depreciation Recapture: Even if the home sale is excluded under Section 121, any depreciation you claimed (or were entitled to claim) while it was a rental cannot be excluded. This portion of the gain is "recaptured" and taxed as ordinary income (up to 25%). Unchecked Military Election: TurboTax might not be automatically applying the 10-year suspension rule. Without this specific "election" checked, the software sees you haven't lived there for 2 of the last 5 years and defaults to taxing the gain. Since you are using the Desktop version, you have the advantage of Forms Mode, which is the fastest way to see where the "leak" is.   Step 1: Check the "Sale of Home Worksheet" Switch to Forms Mode (click the "Forms" icon in the top right).  In the left-hand list, find and click on Sale of Home Worksheet. Scroll down to the section regarding Qualified Official Extended Duty (Military). Ensure the box is checked to elect to suspend the 5-year period. This tells the software to look back up to 15 years instead of 5 to meet the "lived in it for 2 years" requirement. Step 2: Address the Rental Component (Non-Qualified Use) If you rented the home after you lived in it, the military exclusion usually covers the gain. However, if the software is asking about "Non-qualified Use":   Good News: For military members, periods of "non-qualified use" (rental periods) do not count against you if they occurred after the last day you used the property as a main home, provided you are on qualified official extended duty. In the Step-by-Step interview, under the "Sale of Home" section, ensure you accurately mark the dates you moved out due to PCS orders. Step 3: Identify Depreciation Recapture Look at Schedule D or Form 4797. If the amount being taxed matches exactly the depreciation you took over the rental years, that amount is legally taxable and cannot be excluded. If the amount being taxed is the entire gain, then the 10-year suspension election (Step 1) wasn't properly triggered. Quick Summary of the "Military Rule" Under IRC Section 121(d)(9), you can suspend the 5-year ownership/use test for up to 10 years while on qualified official extended duty (at least 50 miles away or in Gov housing). This effectively gives you a 15-year window to meet the "lived in it for 2 years" rule. If the Step-by-Step interview keeps looping you back to a taxable result, go to the Home Sale Worksheet in Forms Mode and manually check the box for the Military Election. This usually forces Schedule D to update and show the exclusion code "S" (for Section 121 exclusion) on Form 8949, which flows to Schedule D as a $0 taxable gain.    

It's crazy everyone you speak to from the IRS and TT give you different answers, you will be lucky to find the right one. This Friday will be my 4th week. Seems like the IRS like to do things on Fridays for some reason. Hopefully I get lucky like @Skina and when I log in this Friday to WMR I see update your bank account 

I fixed it! ... by deleting TurboTax and using FreeTaxUSA instead. This activation problem is unacceptable. And this year the desktop version of TurboTax requires Windows 11, which millions of users don't have or don't want. After 20 years of dealing with issues like this with TurboTax, I'm firing them. Sayonara. Idiots.

The military question under "personal information" asks if you served in the military in 2025.  If you are retired, as my husband is and has been collecting a military pension for many years,  the answer would be "no".    The program is flawed in that for those who prepare their own returns and have no tax experience/knowledge they should not have to "guess" as to where to put the exclusion.        

To access prior-year TurboTax returns, Sign in to ‌TurboTax  You'll have to use the same user ID,  Go to Tax Home Scroll down to Your tax returns & documents Choose the desired year Download or print the PDF. 

The Form 6252 is for installment sales, where you receive proceeds of a sale beyond the end of the year the sale is made. I suggest you go back through your entries and look for an option to indicate that you received the proceeds of the sale in installments and change the option you choose there.

Try this in the Microsoft Control panel. Go to Control Panel Programs and Features  Find "Microsoft Visual C++ [year] Redistributable (x64), Right-click it, and  Select Change > Repair. While you're there, it may help to install the x86 version in addition to the x64 version resolves dependencies. You should now restart your computer after installing or repairing the packages.   

1. Check the "Member of the Household" Logic In the Personal Info (or My Info) section, ensure the military member is still marked as a Full-Year Resident of Michigan.    Even if you are stationed elsewhere, for tax purposes, your "State of Legal Residence" remains Michigan.  If you marked the military spouse as a "part-year" resident because you moved on orders, TurboTax may stop looking for the Michigan military exemption. Keep the military spouse as a Full-Year Resident of Michigan (unless you actually changed your State of Legal Residency via DD Form 2058). 2. Manual Entry in the "Subtractions" Section If the "Deduction for Military Pay" screen disappears during the automated interview, you have to find the manual entry point in the Michigan state interview:   Go to the State Taxes tab and start/edit Michigan.  Look for a section titled "Subtractions from Income" or "Income and Adjustments." Navigate to "Military Pay" or "Military Subtraction." Even if the specific "Military Spouse" logic is acting up, you should see a line for "Active Duty Military Pay included in Federal AGI." 5. Enter your total active-duty pay here. This will flow to Michigan Schedule 1, Line 14, which is the official line for exempting that income. @user17751385021 

Ok so this is where I am at, I put a wrong bank account number so my DD was rejected  TT sent my money back to the IRS on 3/13 got an email from TT stating that.  Spoke with the IRS still had not received the money so I did put a trace on it, still waiting.  Was hoping it will take up to 3 weeks from the date it was sent back, but it looks like you been waiting longer

The county code is selected in your state return.  To change your county go back to your State, get to your state interview section by selecting State in the panel on the left:   You will then be taken to a screen titled Status of your state returns. Select Edit to the right of you state to correct your information for your state income tax return.

The filing instructions prepared by the TurboTax software will tell you whether an IRS form 8453 was generated and what needs to be enclosed with the form.   Note that the form lists the items that need to be enclosed with the form.   In addition, the instructions for the form include the mailing address.   @commuter99 

There is a section under Personal Info.  When you enter each of your personal information, there is a box that asks "did you serve in the armed forces". Here is where you would say "yes".  This isn't an issue however.  The issue was the fact the subtraction did not appear in your California return and you had to enter it manually.   As of now, this must be entered as an annuity adjustment. To enter, you must navigate to the "Any Pension or Annuity Adjustments" screen in the California section to receive the subtraction. This is what I assumed you did and it was the correct response.