Alabama does not tax social security pay nor military retirement pay. why do you keep subtracting this amount from my refund? I do not have to file a state tax form.

[IsabellaG]

You are correct that Alabama does not tax military retirement pay or Social Security retirement benefits.

When you enter those income items in TurboTax Online, you will see your Alabama income tax go up, but if you go through the Alabama state return interview, you will reach a screen About Your Retirement Distributions. On that screen, if you choose Edit, you can indicate that your pension is from military retirement pay. See the screenshots below.

Once you do that, assuming that there is no other income that is taxable in Alabama, your tax will go back down to zero.

If you had no income that is taxable in Alabama, you would not be required to file a tax return, so you don’t even need to do this. You can instead just delete your state return or simply choose not to file it.