Typically, "Yes." Most states exclude military pay from taxable income if the active duty military member is living in the state only due to military orders and the state is not the home of record. In those cases you enter/verify all military pay to exclude from state taxation.
However, each state has their own rules for military filers whether resident or just living in a state due to military orders. TurboTax will help you with those filing requirements. Here is a helpful link to find the states involved in your situation and how they handle military filing.
Be sure in the federal interview you have correctly identified yourself as military ("My Info" section) and identified your W2 as military pay ("Wages & Income" section). Specifically, after entering your military W2 you will encounter a page for "Uncommon situations." There you should select the "Active Military Pay" item.
In most cases once you do that the state interview will be updated to correctly handle your military pay and you would just need to verify in the state interview.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
