You're right, the Illinois military pay exclusion
is triggered in the Federal section of TurboTax by marking your
military W-2 as active duty income.
Federal:
To mark you W-2 as active duty wages in TurboTax:
- Once in you return, click Federal Taxes tab and then choose Wages & Income
- Click Edit next to your military W-2
- Click Continue on the W-2 entry screen to get to the screen titled "Do any of these uncommon situations apply to this W-2?
- Click the box to the left of Active duty military (see screen shot below)
Illinois state
return:
When you move
through your Illinois state return, you will come across a page titled
“Military Pay Exclusion”. Be sure your taxable military pay (W-2 Box 1)
is listed in the box for the exclusion. (see screen shot)
For more
information please see Publication 102, Illinois Filing Requirements for
Military Personnel.