Military pay received from New York State National Guard is suppose to be exempt from New a York State Income tax but TurboTax is including it. How can I correct this?

[mrbill11793-aol-]

Form W-2 box 14 lists this as MNA which is excludable from state tax but it is not excluding it on the state return

[DMarkM1]

Yes, NY allows a subtraction from NY income for active duty service in NY as a member of a NY Organized Militia (National Guard).  There are certain pays that can be excluded.  Below is an excerpt from NY Publication 361.  If you have pay that meets the criteria you will enter a subtraction as follows in TurboTax the NY state interview:

1. Continue your NY return
2. Answer/verify the residency questions
3. Arrive at the page titled "Changes to Federal Income"
4. Scroll down to "Other NY Adjustments to Federal Income"
5. Start/Update the "Member of NY Organized Militia"

"... any pay received for performing active service within New York State due to: 

• state active duty orders issued under New York Military Law section 6.1, or 

• active service of the United States pursuant to federal active duty orders, for service other than training, issued under United States Code Title 10. 

However, income received for regular duties in the organized militia (for example, pay received for the annual two-week training program) does not qualify for this subtraction modification."

[edited: 2/15/2024 5:07AM PST]