Maryland is one of the states that allows up to $5000 of military retirement income to be subtracted during the tax year. How do I apply this on my state tax filing?

[ToddL · Accepted solution]

Enter your DFAS Form 1099-R in the Federal Taxes interview of TurboTax under the Retirement Plans and Social Security section of Wages and Income)

Complete the state tax interview.  The MD state tax interview will identify your military retirement income automatically from the DFAS Form 1099-R entry. There may be additional questions regarding the military retirement pay, but the program will automatically exempt it from your MD taxable income.