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

[bobshillito]

To my initial point - the form seems to give credit for the military pension exemption; however, the page in TurboTax that is suppose to identify the portion of that public pension that is exempt for Missouri tax,..."Pension and Retirement Adjustment Results", depicts $0 exempted.  Thus, my lack of trust that the TurboTax state tax calculation is correct, indicating to me that TruboTax page is not linked properly and/or the state tax calculation is not accounting for that exemption.  Forms look accurate, the TurboTax page is in conflict.  What is correct?

[GinnyF · Accepted solution]

• TurboTaxBillMc , Enrolled Agent - TurboTax TaxPro

Go through the Missouri interview until you come to a screen entitled "Missouri Pension and Retirement Adjustment" (it's a ways in). Note that military pension is listed as excludable.

Hit Continue.

The next screen should report the amount of your pension that has been excluded in Missouri.

If the software doesn't recognize your pension income in Missouri (so it can exclude it automatically), go back to the federal return and make sure your pension information was correctly entered. Worst case, delete the Missouri state return and re-add it, to re-import the federal information.

[GinnyF]

To help explain the difference between types of military income the following information is an excerpt from the Missouri Department of Revenue filing instructions for the 2017 tax forms.

These are the instructions for MO 1040, line 8.

Figure Your Taxable Income
Line 8 - Pension and Social Security/Social Security Disability/Military Exemption
If you or your spouse received a public, private, or military pension, social security or social
security disability, complete Form MO-A, Part 3. Enter the amount from Form MO-A, Part 3, Total
Exemption on MO-1040, Line 8. Attach a copy of your federal return (pages 1 and 2), Forms 1099-R,
W-2P, and SSA-1099.

These are the instructions for MO1040, line 20, Military Income Deduction

Line 20 - Military Income Deduction
Enter the amount of military income earned as a member of any active duty component of the Armed Forces of the United States. This includes being ordered to federal active duty status under 10 USC or 32 USC, participating in Annual Training (typically two weeks a year), and participating in other active training or schools, except for Inactive Duty for Training. This amount may not include military income earned during State Active Duty. This amount must be included in your federal adjusted gross income and not previously taken as a deduction or subtraction.
You should submit appropriate documentation to verify your military income deduction. Please include a copy of your Leave and Earnings Statement which validates how long you were on active duty for training or annual training and the amount you earned on active duty for training or on annual training. Failure to attach the requested documentation may result in the disallowance of this deduction. If you have additional questions about this deduction, you may contact the Department’s military liaison at military@dor.mo.gov.