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james-a-melvin
New Member

Does Turbotax have the new Missouri Military income tax deduction in its state tax calculation that began for the tax year of 2020?

This tax break is for military reserve pay (IE inactive duty training, annual training) providing 20% tax break off this specific income.  The state taxes that were generated by Turbotax didn't seem to show this deduction as the state requires specific documentation to be submitted to the Missouri DOR.  Included in this is the state website detailing the tax break.  Thank you!

https://dor.mo.gov/military/military_income_deduction_info.php
4 Replies
MaryK1101
Expert Alumni
Intuit Approved!

Does Turbotax have the new Missouri Military income tax deduction in its state tax calculation that began for the tax year of 2020?

Yes, look at the screen shot below in the Missouri state tax part of TurboTax.  Military personnel may deduct a portion of their income earned from the following sources from their Missouri adjusted gross income:
* National Guard Inactive Duty Training (IDT)
* National Guard Annual Training (AT)
* Reserve components of the Armed Forces

 

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james-a-melvin
New Member

Does Turbotax have the new Missouri Military income tax deduction in its state tax calculation that began for the tax year of 2020?

I can't believe I missed that.  Thank you for your help!

Ilnicky007
New Member

Does Turbotax have the new Missouri Military income tax deduction in its state tax calculation that began for the tax year of 2020?

Where do I put the deduction for title 32 and title 10 active duty pay received?  It is separate from the 20% deduction for IAD training and is a 100% deduction.  This deduction is line 17 on the MO-1040 but I couldn’t find it within TurboTax.

AmyC
Expert Alumni

Does Turbotax have the new Missouri Military income tax deduction in its state tax calculation that began for the tax year of 2020?

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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