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New Member
posted Feb 5, 2025 8:04:12 AM

Why doesn't Turbo tax deduct military retirement income from the total state taxable income?

I understand that not all states exempt military retirement from taxation but, mine does....why doesn't turbo tax know this?

0 5 1781
5 Replies
Level 15
Feb 5, 2025 8:06:47 AM

It would be helpful to know which state tax return you are referring to?

Expert Alumni
Feb 9, 2025 6:15:11 AM

For us to better assist you, can you let us know what which state you're filing a tax return for?

 

@shamblin48 

 

 

Returning Member
Feb 22, 2025 8:03:56 AM

Hello, I'm in Louisiana and my $46.9K military pay should be excluded from LA income.  I reviewed the inputs for hours and everything is entered correctly, I manually calculated the tax and was correct to the penny showing that turbo tax is not reducing the total income by my military pension.  I have to go in and select 49E Other and then write in "military pay exclusion" and then I get the correct amount.  Why is 04E not an option?  Why is it not reducing my income by correct amount?  Thank you!

Returning Member
Feb 22, 2025 8:23:07 AM

Also, with regard to my LA state tax, selecting Federal Retirement Code 04E or Code 05E or selecting None of the above (which it states in the Learn More on the page will deduct qualified amounts) , not a one changes the tax due for state???

Thanks

Expert Alumni
Feb 26, 2025 3:22:36 PM

You must make the selection in the federal section of TurboTax on the 1099-Rentry.  You will see a follow-up question after you enter the 1099-R (See below)  This will give you the correct 04E option.

  @wakeordiex