Military W2- Regular drill vs Title 10 activation

[Jordan80kp]

I'm a traditional guardsman.  I was on normal Title 32  for drills most of the year, but was activated for the last couple of months of 2025 for Title 10 deployment.  My home of record is the state of Iowa.  My W2 does not break out the difference between drills and Title 10.   YTD I paid $1728.84 in state taxes, but Iowa State taxes are exempt for activation.  I should receive back $868.43 for the portion that is Title 10.  Do I need to create two W-2s (Drill and Activation) from the original W2 (Combined) with the different totals, or is there an option to deduct the portion of state taxes I paid while on title 10 orders?  In the profile, I said I was in the guard all year.  Looking for any advice.

[TomK2023]

No, do not create two separate W-2s (this might cause a mismatch... total income reported to the IRS won't match what the DFAS (Defense Finance and Accounting Service) sent them.
 

How to enter your Military W-2 (Federal):

1. Enter your W-2 exactly as it appears under the Federal section of your tax return.  
2. Indicate that(  you were "Active Duty Military" if prompted. (Title 32 and Title 10 are generally taxed the same way).   Iowa exempts Title 10 active duty pay, but taxes Title 32 (drills and annual training).

Within your State return:

1. Click through the Iowa interview, until you see a screen that says "Adjustments to Income" or "Subtractions."  There should be a specific line for "Active Duty Military Pay" or "Military Exemptions."
2. You will need to look at your LES (Leave and Earnings Statement) to calculate the total taxable pay (Base Pay + any taxable allowances) earned during your Title 10 activation months.
3.  Enter that specific dollar amount into the "Active Duty Military Pay" subtraction box. (this Title 10  portion of your total income is active duty for Federal, but exempt from state tax.)
    

You can verify your math ($868.43 expected refund) via the program... it will look at your total Iowa tax liability (now reduced by your Title 10 subtraction) and compare it to that $1728.84.

Be sure to keep your Title 10 orders and your Dec/Jan LES files for your records (in case the Iowa Department of Revenue asks for verification).

Thank you for your service!