Military Survivor benefits

Arizona exempts military survivor benefits from taxes. How does Turbo Tax show this exemption?

posted

It is reported the same way as a retired military person is. When you enter the 1099R information in your federal tax return, there is a screen that says "Where is this Distribution From". You will check the box mentioning 'Retired or retainer pay of the uniform services of America".

This will populate into your Arizona Form 540 in line 29B as a deduction that reduces your Arizona taxable income.

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