It depends. I checked my program and the military pay is being properly excluded from Kentucky income. When you entered your military W2 in the federal return and answered the follow-up questions, did you check the box indicating this was active military pay? See the screenshot below.
if this was answered correctly, military pay will be excluded on Line 13 of Schedule M in your return and included as a subtraction in line 8 in Kentucky 740.
![](https://lithium-response-prod.s3.us-west-2.amazonaws.com/turbotax.response.lithium.com/RESPONSEIMAGE/87de334a-9f9b-4f9e-84ad-d21b85a1d227.default.png)
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