I have two 1099 and social security and my wife has a W-2 and social security. It never gets me to the 1099's. I am a MO resident, my military pay pension should not be state taxed

[MichaelL1 · Accepted solution]

This information on the MO return is coming from the entry of the 1099R in the Federal section of TurboTax. This information going to the State return must be answered correctly in the Federal section for this to be computed correctly.  

Log back into TurboTax.

Go to Federal Taxes

Income and Wages 

Retirement section 

Update the 1099R. 

This 1099R you will need to make sure it is entered correctly and a following screen will ask, "where is this distribution from"  The answer should be "Military retirement" and it should show the Missouri Distribution amount below.  The next screen should be answered, "Military Pension."  This amount should then NOT be excluded from income on the MO. return.  

Then when you go through the MO return it will just go through some screens showing you that it has been excluded from MO income.  

Beginning January 1, 2016, 100 percent of a military pension income will be exempt from Missouri state tax. The military pension exemption may be taken on the Form MO-1040, MO-A, Part 3, Section D.