If my state does not require me to pay state taxes because of active duty military status making me exempt how do I reflect this on my state return.

If you were stationed outside of West Virginia and were not physical present in West Virginia for more than 30 days then you will have to file a nonresident return if you had any other West Virginia Income. Otherwise you will not have to file a state tax return since your military pay is not taxable in West Virginia.

If you need to file a nonresident return because of other income or taxes withheld then you will need to change your residency when you get to the state return. Select Nonresident.

"You must file a resident return and report all of your income in the same manner as any other resident individual unless you did not maintain a physical presence in West Virginia for more than 30 days during the taxable year. If you did not spend more than 30 days in West Virginia and you had income from a West Virginia source, you may be required to file an income tax return with West Virginia like any other Nonresident individual, depending on the type of income received" (West Virginia Tax Department)

I was physically present for more than 30 days. I was there for 2 1/2 months. 

If you were physical present in WV for more than 30 days then your military income will be taxable in WV.

The military pay is only excluded if you were station outside WV and did not spend more than 30 days in WV.