Maine does not tax military retirement but only a portion gets deducted from the state return

[LindaA · Accepted solution]

During the Maine state interview, you'll be able to indicate how much military pension you received in 2016. 

• Open (continue) your return in TurboTax Online. (If your return isn't open, you'll need to sign in and click Take me to my return.) 
• Click the State Taxes tab.
• Click the Your State Returns tab.
• Under Status of Your State Returns, click Continue next to Maine.
• Continue following the onscreen instructions. When you get to the Retirement Income and Contributions screen, select Yes under Did you receive retirement or pension income in 2016? (Click the first screenshot below for reference.) Click Continue.
• On the Pension Income Deduction screen, enter the amount of your military pension, then click Continue. (Click the second screenshot below for reference.)