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

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

shamblin48 — Tue, 03 Feb 2026 13:05:32 GMT

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

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

DoninGA — Wed, 05 Feb 2025 16:06:47 GMT

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

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

KeshaH — Sun, 09 Feb 2025 14:15:11 GMT

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

@shamblin48

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

wakeordiex — Sat, 22 Feb 2025 16:03:56 GMT

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!

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

wakeordiex — Sat, 22 Feb 2025 16:23:07 GMT

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

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

MaryK4 — Wed, 26 Feb 2025 23:22:36 GMT

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