Military Pension -- No subtracting

[SMS2003]

I just looked through the draft return, and the 30K is not deducted from Virginia Taxable Income. All I got was the standard deduction from my federal AGI.

[BillM223]

First, make sure that you have indicated Virginia as your resident state.

Next, when you enter the 1099-R, there may be a screen asking what the source of the 1099-R distribution was. This helps TurboTax know how to handle the retirement exclusion in the states.

Then do your state and see what happens this time. Come back if there are additional questions.