The military questions should be answered as current, "Active Duty". Be sure to answer all the military questions in "My Info" including rank to qualify for the free filing discount. The resident state would be his "home of record;" his resident state when he entered the military. I recommend you select the same resident state under the Military Spouse Relief Act. Here is a link with some information for each state on filing requirements for the active military taxpayer and non-military spouse.
Also, be sure when entering the military W2 information, to select "Active Duty Military Pay" in the follow on questions.