Why is Missouri software not identifying qualified military pension 1099-R income as an allowed exemption?

[bobshillito]

Identified military pension on federal income tax.  Missouri exempts taxing military pay. However, military pension income entered does not show up as an exemption in the Missouri software.  Identified the same problem in 2016.  Turbo Tax fixed the problem.

[bobshillito]

Followed TurboTaxBillMc  instructions.  Deleted Missouri return, reentered 1099-R data in federal return and repopulated Missouri return. State return still does not recognize military pension as an exemption.  What next Turbotax?

[GinnyF]

Did you see the screen in MO for "Missouri Pension and Retirement Adjustment"?
Was there any data on that screen?

[GinnyF]

One thing to double check is that the 1099R is completely filled in from the original form, including zip code and state in the employer's section and the state lines at the bottom, fields 12-14.

[GinnyF]

That triggers the Where is This Distribution From? screen in the federal interview.

[GinnyF]

In Missouri, did you see the screen that tells you Turbo Tax automatically calculated your retirement deduction, followed by a screen showing your Public pension sources?

[GinnyF]

Can you go to forms mode and review the calculation of form MO-A? That is where your pension exclusion is calculated. Let me know if that does not help understand the pension exclusion calculation.

[bobshillito]

Yes - MO-A shows two errors: 1) That we have a Qualified Insurance Premium, and 2) that my pension is taxable.

[GinnyF]

Is your income above the limits noted at the top of the MO-A page?
do you have a qualified insurance premium? Is that error correct?

[GinnyF]

Please do not post any personal info here.

[bobshillito]

No - income is not above MO-A limits and No - I do not have a qualified insurance premium.

[GinnyF]

So something is causing the qualified insurance premium error from interview. That may have affected the military calculation. Do you receive social security benefits as well?

[bobshillito]

Yes - I do receive social security benefits.

[GinnyF]

So there is a calculation between your military pension exclusion and your possible taxable SS benefits exclusion. The end result of that calculation of the exclusions in total are listed in separate sections of the Form MO-A. Do you have entries in the lower portions on that form for military, SS benefits and\or public pensions?

[bobshillito]

Yes - Sections C and D are filled out.