See this TurboTax website for military - https://turbotax.intuit.com/personal-taxes/online/military-edition.jsp
In the My Info section of the program you need to indicate that you are active military. You must enter a Military W-2 in the Wages & Income section and after completing the W-2 on the screen labeled Let's check for uncommon situations you will need to check the box Active military duty
When you complete the tax return using the above information you will not be charged for either the federal or state tax returns.
Only the Free, Deluxe and Premier online editions are eligible for the discount. If you opted to use one of the Live editions, that would not be covered by the Military discount.