Do I need to pay IL state taxes for Army reserve pay? They didn't include it on the W-2 and now it says that I owe.

[tim-j-swan]

Boxes 16 through 20 are empty on the W-2

[SweetieJean]

http://www.revenue.state.il.us/Individuals/SpecialFilingRequirements/military.htm

[Hal_Al]

TurboTax does not automatically excluded the pay; you have to enter it as a deduction, in the IL interview

[tim-j-swan]

Turbotax doesn't seem to have 'deduction' as an option.

[tim-j-swan]

TurboTax only asked me if it was active duty pay, not reserves.

[Critter]

When you entered the W-2 there was a follow up screen that indicates the military pay aspect so the state will know it is military pay ... and when you get to the state interview it will ask how much of the military pay is exempt from IL taxes. 

[tim-j-swan]

I already entered the W-2 and I don't remember seeing that as an option. Obviously, I would have said it was military pay, but they never asked.

[tim-j-swan]

It asked if it was active duty pay only, not reserves. So how am I supposed to report it???

[Critter]

Please click on the Active duty to get IL to recognize it.

[tim-j-swan]

I tried that just for fun earlier and the numbers on the left side of the screen showing how much I owed only reduced by $5

[Critter]

Did you also go to the state interview and enter the amount of military pay so it can exempt it ?  Look at the screenshot in my answer.

[tim-j-swan]

Military pay exclusion did not appear anywhere for me. I tried to find it.

[tim-j-swan]

Maybe they just designed it to only ask that if you put 'active duty' for a job somewhere.

[tim-j-swan]

Yep. It still doesn't work when I enter in the full wages into 'military pay exclusion' Somehow, it's getting my job that I had in Kentucky mixed up with the one in Illinois. It added to my Kentucky return when I said that my IL job was military.

[tim-j-swan]

I put the amount on 'other subtractions' on Illinois Part-Year and Nonresidents, but that still requires me to essentially lie either just to TurboTax or potentially the IRS that I was active rather than reserves.