You will enter the 1099R in the federal interview section of you return first. After this is entered, you would begin working on your state return. There is a section in your state return that will allow you to take an exclusion for military pay.
10E is for active military pay, all my pay is retired military so I'm using 04E. when I enter info, it initially removes my Retired pay and my Louisiana taxes owed changes to a refund. Next, I get a message that this is a duplicate entry and will be removed. It says it automatically removes retired pay for Louisiana based in the 04E code used in the federal tax income. However, it has not been exempted from the state tax.
You are receiving an error because you are attempting to exclude the same income tax.
If you coded your pension as 04E in the federal section, do not enter anything on the Louisiana screen "Any Other Income Exclusions." Say Done.
I understand that’s how it should work, but for some reason the Louisiana tax forms aren’t recognizing the Federal 04E. It is not excluding my military retirement pay from the Louisiana state tax. Not sure how to move forward from here.
When I run military retirement through TurboTax online, it works for me,. I code the 1099-R as 04E in the federal section, leave "Any Other Income Exclusions?" blank in Louisiana. On the next screen it asks for the military retirement date.
When I look at the return, military retirement is excluded.
You can contact support. They can look at your return. What is the TurboTax phone number?
When I get to the page where it asks for my retirement date, there isn’t anywhere it input it.
I'm not able to duplicate your error. Try logging out of TurboTax and clearing you cache and cookies.
You can contact support. An Enrolled Agent can look at your return.
I spent over 2 hours on the phone with the person trying to help me. No matter what we did. It still does not reflect the Military pay exclusion. The system says it does but when u look at the return the taxable income is not reduced! Also the correct code for Military Retirement Pay is 05E not 04E. P.S. I also tried the 04E and it still doesn't work!
To try to troubleshoot your issue, I have recreated the return in my sample program and it works correctly. Your issue may reflect a variety of things.
I spent over 2 hours on the phone with a help advisor last Thursday. She checked and tried everything and could see that it was not importing the exclusion of my military retirement pay on the louisiana return. We deleted forms, re entered, tried manually manipulating the form. Tonight I will try deleting everything and restarting new. If that does not work I want a full refund and I will use a different tax program.
Here’s how my 2 hour phone call went. We completed all the taxes, fed and state, and my mil retirement pay was not excluded from state taxes. Then we went back into the state form and added the 04E exemption on the page that asked for other exempt income and walla, it deducted my mil pay and reduced my tax burden by $1000.00👏. Now the important part. If you click on the continue button it will remove the exemption because it believes it is a duplicate, so DON’T HIT THE CONTINUE BUTTON. Just back out using the menu on the left and then navigate to the review. Good luck🤞
Well, after another 3 hour call and them having to give me a free upgrade so a CPA could go over everything. We finally did exactly what u did. Now I get my proper refund instead of paying $600. TurboTax really needs to get their programmers busy and fix the problems so everyone else doesn't have to go thru all this BS!
THank you for the info..Will try. We have both state exempted retirements. Exact same situation here. Say we owe $1908 but should be 0. At a roadblock. Deleted and redid state info 3 times.
Your answer fixed the issue for my friend! Before this it showed LA tax being paid on military retirement (which is tax exempt in Louisiana), so it went from owing $100 to being refunded $600, meaning the state would receive $700 that it doesn't deserve.
Key to filing military retirement in Louisiana is larryhawks answer of "so DON’T HIT THE CONTINUE BUTTON. Just back out using the menu on the left and then navigate to the review."
Thanks for your help!!👍👍👍
For exempted Teacher Retirement funds I had to do the same procedure as yall are doing for military funds. My printed La tax document listed the exempt code twice but only one has the correct figure. The other shows $0 so it did not duplicate. I simply e-files it that way. Thanks to all that helped in this matter.
I had the same issue with Louisiana exempt income being taxed in the TurboTax state program. I spent endless hours on the phone with no success. I requested a refund from TurboTax for the state program through their guarantee program. I explained everything in detail and received no response. Therefore, I disputed the charge on my credit card and received the credit. TurboTax needs to fix this glitch. We have no idea how many taxpayers are being overcharged Louisiana income tax due to TurboTax negligence and failure to admit and fix the issue. I now file my Louisiana income tax return for free through the Louisiana Department of Revenue and Taxation website. It works like a charm!
This may be a day late and a dollar short but here is how you needed to exempt your Louisiana Military retirement income.
You will enter the 1099R in the federal interview section of you return first. After this is entered, you would begin working on your state return. There is a section in your state return that will allow you to take an exclusion for military pay.
10E is for active military pay, all my pay is retired military so I'm using 04E. when I enter info, it initially removes my Retired pay and my Louisiana taxes owed changes to a refund. Next, I get a message that this is a duplicate entry and will be removed. It says it automatically removes retired pay for Louisiana based in the 04E code used in the federal tax income. However, it has not been exempted from the state tax. It is not working properly! Feel free to call me at [phone number removed].
Took me 4 times talking to different people before they refunded me. Turbo Tax used to be good, now... Idk.
There is a work around for this. Took me 2 weeks to get them to help me with the work around. It's been awhile, but basically do everything and then go back and add it to state again. Do Not hit the continue button, just go rite to file my taxes. It will take it and give the the exemption. Sorry it's kinda vague, but it's been 2 months.
I performed the steps that ere previously outlined in the return and the military pay was excluded from LA income. I looked on the RES Schedule in the Louisiana State return and verified this.
In my example, the federal aGI was $80,500 (this is all hypothetical). Then I look at exempt income from the REs schedule and see where $45000 that i entered for Military Retirement Pay is excluded along with state taxable interest. This reduced my LA AGI from $80500 to $31000.
See if your LA Res schedules are the same. Your income may be excluded and you just don't realize it. Here is what this looks like.
This answer works for ALL income excluded for Louisiana. Crazy but true.
Key to filing military retirement in Louisiana is larryhawks answer of "so DON’T HIT THE CONTINUE BUTTON. Just back out using the menu on the left and then navigate to the review."
Thanks for your help!!
Yes that is the correct way to make it take the military retirement exclusion. But you would think TurboTax would fix the glitch. It's been since the 2022 tax season that it's been messed up and they know it!
All,
Here's one better for you: As a military retiree in LA I just discovered that I've been overlooking this glitch in Turbo Tax's desktop version since moving home eight years ago. I've literally overpaid my LA taxes for eight straight years! Thank you everyone for all of this; you saved my family and I a massive sum of money (once I file all of the amended returns with State of LA. I've trusted TT with my taxes for over 20 straight years. But if they can't fix this glitch before next tax season, I'm done. I may be done regardless. We're talking over 7K in lost funds.