maine state income tax

[gadolen]

Maine does not tax Military pensions.  However, my pension amount is being taxed in my State return.  How do I correct this in Turbo Tax?     

[PattiF · Accepted solution]

You will need to specifically identify your military pension so that TurboTax can treat it differently from other pension amounts
 

Note that other pensions are allowed a $10,000 exclusion subject to modification by Social Security, etc. But, as you say, starting in 2016, military retirement pay is completely exempt from Maine income tax.

• First, go to the state interview for Maine. Go through the interview until you see a screen entitled "Retirement Income and Contributions". 
• Check "yes" for the first questions.
• When you hit Continue, you will see a new screen entitled "Pension Income Deduction". Enter your military pension amount here. 
• This will remove your entire military pension from Maine taxable income.