Where do I deduct income from taxable (1040 line 10b) to non-taxable related to the IRS Strickland Decision? This is for TY2023 and I have not filed yet.

[JohnW152]

Here's the entire income entry and exclusion procedure.  If you've entered your income correctly, just skip to the second part.

First, enter your 1099-R military retirement information for your military retirement, exactly as shown on the form: 

1. Open TurboTax Online
2. Select Tax Home in the left pane
3. On the Hi, let's keep working on your taxes! screen, select the dropdown on the right side of the Income & Expenses box, then select Start, Continue or Pick up where you left off
4. On the Your income and expenses screen select Start or Continue to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R)
5. Make all entries as appropriate on the ensuing screens

 Then, you'll make the adjustment for the excluded income: 

1. Select Wages & Income in the left pane
2. Scroll down and select the dropdown to the right of Less Common Income
3. Scroll down and select Start to the right of Miscellaneous Income, 1099-A, 1099-C
4. Scroll down and select Start to the right of Other Reportable Income
5. Select Yes on the Any Other Taxable Income? screen 
6. On the Other Taxable Income screen, enter “IRR 78-161” in the Description box
7. Enter the non-taxable amount as a negative (-) number in the box to the right of the appropriate taxpayer's name, then select Continue
8. Select the appropriate answer on the Any Other Taxable Income? screen 

Line 5 of your 1040 will display Form 1099-R information, and the excludable income will be subtracted out and appear as a negative entry on line 8z of Schedule 1, with the description “IRR 78-161”.