The Turbo Tax "state tax" for S.C. states the military retirement pay exemption for 2018 is $3,000.00 which is incorrect. The correct exemption for 2018 is $11,700.

[army2bonds-]

Can Turbo correct this? If sot, how do I just process my Federal tax return and disregard processing the Turbo Tax state return?

[TomD8 · Accepted solution]

Did you have other earned income besides the military retirement?

Military retirement deduction is limited to $11,700 for individual taxpayers under age 65.  Taxpayer must have other earned income, other than the military retirement, to take the deduction.

Taxpayers under age 65 with no earned income would only qualify for the $3,000 retirement deduction on line p.

https://dor.sc.gov/forms-site/Forms/SC1040Instr_2018.pdf , page 5

[army2bonds-]

Thank you for very much this information. I do have other earned income such as a small retirement income from the Federal Employees Retirement System (FERS). I also have earned retirement income from Social Security benefits. Can I add these earned incomes to my S.C. state tax return in order to qualify for the military retirement deduction of $11,700. You advice/response will be greatly appreciated.

[army2bonds-]

Hi, I just read the DOR SC 1040 2018 instructions. It's very clear how to qualify for the exemption. I want to thank you so very much for your assistance.

[TomD8]

I want to thank you for your military career.