Your military retirement pay should carry over from the federal return you only need to enter it once again on the "Pension Income Deduction" screen under Military Pension income.
Did you enter anything else after the retirement income? This might affect the calculation as well. You can review your state summary by following the instructions below to ensure that the full military retirement is deducted from your state income.
- Click on "Tax Tools" in the left menu
- Click "Tools"
- Click "View Tax Summary" in the Tool Center window
- Click on "Tax Summary" on the left