On ny state tax it 203 there is an option for exempting military combat pay but not for military pay. They are different codes. How do I fix it?

[DanielV01]

Are you active duty military from NY stationed outside NY?

[Janet1]

Yes, I am.

[DanielV01]

Make sure that you have marked that your W-2 is active duty, which is at the end of the W2 interview.  In the NY return, you want to answer that you did not maintain living quarters in New York.  That should exempt the income.  Comment if it does not.

[Janet1]

Verified both the W-2 data and the did not maintain living quarters in ny.   Did not change the exempted income.

[DanielV01]

I'll see if there's something else.  Might take a few, but I'll get back with you.

[Janet1]

Thank you!

[Janet1]

It worked!   Thank you very much.

[DanielV01]

You are welcome.

[DanielV01 · Accepted solution]

The adjustment does not happen at the beginning of the NY interview, but towards the middle.  It is important that your W2 is marked correctly in the system and that you entered that you did not maintain a residence in New York.  You will see a number of screens dealing with allocation.  Ignore all of them.   You will be asked about NYC and Yonkers.  Ignore those screens also, You will finally come to a screen entitled Changes to Federal Income.   Note the following:

1. The second subheading says Wage and retirement adjustments and the first option is Received Military Pay.  
2. Click Start on that selection.  
3. Then, you will see the screen Military Pay.  
4. On this screen, enter the Federal amount of Military Pay reported, and then the NY portion that was earned while stationed outside of NY.  This amount (probably all of it) will then be exempted from your income.

I've attached a screenshot on the Changes to Federal Income screen where to click:

[sopatax]

followed direction to select military pay, but what about ny allocated pay.shouldnt that be 0 since no residency in NY for 10 years now and no ny income.