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Level 1
posted Mar 31, 2024 8:38:43 PM

AZ Return is Not Exempting Military Retirement for 2023

I completed my 2022 Federal and Arizona tax returns using TurboTax and my state return correctly exempted my Military retirement income from Arizona tax.

Completing my state return for Arizona in TurboTax, it is not reflecting my Military retirement income as exempt and I cannot find a way to correct this.

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1 Best answer
Expert Alumni
Apr 2, 2024 8:19:23 AM

In TurboTax Online, on the Arizona state income tax return, I was able to report the Uniformed Services Pension Deduction to exclude military pension.

 

 

The deduction is reported at the screen Uniformed Services Pension Deduction Summary.

 

 

When entering the IRS 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, I selected Retired or retainer pay of the uniformed services of the US at the screen Where is your distribution from?

 

 

Information about the Exclusion for Retired or Retainer Pay of the Uniformed Services of the US may be found in Arizona Form 140 Resident Personal Income Tax Booklet found here, page 15. 

2 Replies
Expert Alumni
Apr 2, 2024 8:19:23 AM

In TurboTax Online, on the Arizona state income tax return, I was able to report the Uniformed Services Pension Deduction to exclude military pension.

 

 

The deduction is reported at the screen Uniformed Services Pension Deduction Summary.

 

 

When entering the IRS 1099-R Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, I selected Retired or retainer pay of the uniformed services of the US at the screen Where is your distribution from?

 

 

Information about the Exclusion for Retired or Retainer Pay of the Uniformed Services of the US may be found in Arizona Form 140 Resident Personal Income Tax Booklet found here, page 15. 

Level 1
Apr 2, 2024 11:21:52 AM

Thank you very much for your help.