Why is Missouri software not identifying qualified military pension 1099-R income as an allowed exemption?

[bobshillito]

The resultant dollar value of Section E is the total amount of the military pension, which is identified to be exempt.  That is why I am confused that that dollar value is not also identified as exempt on the "Missouri Pension and Retirement Adjustment" page.

[GinnyF]

Did the amount in section E, go forward to the main MO form, line 8? Was the military pension (which included in Public pensions) + the exclusion for SS benefits = to line 8 of the MO 1040?

[bobshillito]

Yes

[GinnyF]

Then your return is calculating accurately. The military pension (under state design) is included in the Public Pension amount. Turbo Tax asks additional questions to separate the military pension out of that total for accurate calculations.

[bobshillito]

Agree the correct amount is entered in MO-1040 line 8; however, disagree the amount in MO-1040 line 20 'Military Income Deduction'should be zero.  Since Missouri does not tax military retirement income, line 20 should read the same amount a line 8.

[GinnyF]

Line 20 is for active duty military pay only. It is not for military retirement pay. This has been a great discussion.

[bobshillito]

Baloney - Please let me speak to a lawyer. Missouri law does not tax ANY military federal retirement pay.  Who do I talk to about getting my money back from Turbotax?  I have been a loyal customer for 10 years. This is not correct and never has been.

[GinnyF]

On line 8, you stated that you received your whole military pension amount plus your SS benefits as a deduction from income. Is that correct? Was the total of those two items deducted from your taxable MO income on line 8?

[bobshillito]

Time out!  My Apologies!  I have compared my 2017 return to my 2016 return.  After continuing to complete my 2017 Missouri return, I find I do get the military pension exemption on the 'Your Missouri Income Bottom Line' page.  However, earlier both the public and private pension exemptions on the 'Pension and Retirement Adjustments Results' page are both $0.  I believe this latter page is the one that needs code adjustment to reflect the appropriate public pension allowed on the subsequent Bottom Line page.  Can you confirm?

[GinnyF]

Let me look.

[bobshillito]

What did you find out on why nothing is populated on the Pension and Retirement Adjustments Results page?  Any luck?

[GinnyF]

Nothing so far. I will post when I have something regarding this issue.

[bobshillito]

Something that may help.  You mentioned something about the pension provider's zip code being involved in this calculation.  My pension provider's address changed from last year.  Last year's zip code was xxxxx-xxxx.  This year's zip code is xxxxx-xxxx.  Both year's the same provider was Defense Finance and Accounting Service.

[bobshillito]

Just downloaded an update to the Missouri tax software and my issue from 2/19/2018 still has not been resolved.  Although the 'Missouri Pension & Retirement Adjustment' page identifies Military Retirement pension as an example of a public pension and that my return identifies my $54,949 Military Retirement pension as a Federally Taxable Pension from Public Sources, the 'Pension and Retirement Adjustment Results' page displays Exempt for public pensions as $0.00.  This does not give me confidence TurboTax is calculating my Missouri taxes correctly.  I identified that the DFAS has changed their zip code this year for Military Retirement 1099s and am still waiting for a resolution.  This issue has delayed my filing for almost a month now and am running out of time GinnyF. When can I anticipate a resolution?

[GinnyF]

Have you looked at the calculations on your form MO-A, Part 3? They show the calculations MO requires in order to complete the lines on the MO-1040. They will show you how your pension deductions were calculated.