California FTB now exempts the first $20,000 of military retirement. It seems Turbo Tax software does not apply military retiree the $20,000 tax exclusion.

breitenj · ‎January 23, 2026

Have been on the phone with Turbo Tax for over an hour trying to remedy this with negative results

DaveF1006

You will enter this into the state interview section. Once you prepare your California State return, you will land on a screen that says Any Pension or Annuity Adjustments. Here you will enter your military retirement pay as a subtraction.

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ccr69

Also at issue is the 1099-R from myPay does not have a Block 16 coded with "M" in fact there is no Block 16. I have posed this question to DFAS and myPay.

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California FTB now exempts the first $20,000 of military retirement. It seems Turbo Tax software does not apply military retiree the $20,000 tax exclusion.