Source of MD pension as a widow of veteran

[ann51]

I think my situation is rare.  When my husband retired from the Fed government, he was able to combine his 20 years of Army service with 6 years as a Federal employee.  By doing this, he was able to add myself as a 1/2 beneficiary.  In Turbotax under the MD pension, there is a question as to "Source" of this pension.  Choices include Military retirement as well as other.  In my situation, the source is both.  Any ideas as to how to answer this?  Thanks very much!!

[SusanY1]

Since Maryland allows for a deduction from state taxable income for military pension for spouses, I would say that it is military retirement.  There is a limit on the amount that can be excluded which varies based on your age.  You will be able to deduct $12,500 of this income if you are under 55 or $20,000 if over age 55 by the last day of the tax year. 

Since the bulk of the retirement benefit is due to military service, I believe it should qualify for the deduction.  However, you may want to can learn more about this deduction HERE to see if your situation seems to fit the rules. 

If he worked for any of the federal agencies named on the above linked site, it would definitely qualify.