When I entered the 1099R for military retirement income my Ohio taxes increased but the state of Ohio doesn't tax military retirement?

[AnnS7]

The Ohio military retirement exemption is handled in the state return, but as you're going through 1099-R follow up entry screens on the federal section double-check that the IRA/SEP/SIMPLE box was not checked and that the plan is a non-qualified plan. 

While working through your OH return:

• Watch for the screen titled " Here's the income that Ohio handles differently?" (see screen shot)
• Click Start next to Military and Civil Service retirement income
• Click Yes to the question Did you receive military retirement income or federal civil service pension income in 2016? on the screen titled " Military Retirement or Civil Service Income".
• On the next screen " Military Retirement and Civil Service Pension Income", enter the amount of your taxable military retirement (Form 1099-R Box 2a) in the box to the right of Military retirement income included in federal income. (see screen shot)

This should exempt your military retirement from Ohio.

[pc100337]

Ohio is supposed to exempt military income but it is being taxed, why

[Irene2805]

The Ohio military retirement exemption is handled in the state return, but as you're going through 1099-R follow up entry screens on the federal section double-check that the IRA/SEP/SIMPLE box was not checked and that the plan is a non-qualified plan. 

While working in your OH return:

1. On the screen, Here's the income that Ohio handles differently click the Start/Revisit box next to Military and Civil Service retirement income.
2. On the screen, Military Retirement and Civil Service Pension Income, enter the amount of Military retirement income included in federal income.

This should exempt your military retirement from Ohio income tax.

[5644]

How do you figure the Civil Service Pension Income?

[ErnieS0]

Ohio does not have a separate deduction for civil service retirement. Ohio does have a retirement income credit and lump sum retirement credit that applies to all pensions.

To learn more about Ohio retirement see Income - Retirement Income

@5644