In Alabama Military retired pay is not taxed .

[jnorris2]

I have followed the instructions and there is no place to select yes. I have reentered Fed and Al info multiple times.

[IsabellaG · Accepted solution]

If you report a 1099-R from military retirement, it shouldn't carry over to your federal return. There is no place to check that it's not taxable; it just doesn't carry over.

You can compare your Alabama state tax summary to your Federal Tax return to make sure that your retirement pay isn't taxed. See the screenshots below, where I entered a 1099-R for $25000 of military retirement pay. It's only taxed on the Federal return, not the state.

To view your Federal and State tax summaries, go to My Account at the top of your screen.

Select Tools

Select View Tax Summary. 

There are tabs across the top of your screen for Federal and State  summaries.

If it looks like your Military retirement is being taxed by Alabama, please comment back here with more information.