Military Retirement pay exemption

[majjohn4]

Trying to finish my LA state income tax filing.  When I attempt to deduct the amount of my military retirement pay (exempt in LA) from my LA return, Turbotax tells me that the amount has already been subtracted by the program and will not allow the manual deduction.  When I look at the detailed LA Income tax return, Turbotax appears to be basing my LA tax off of my Fed AGI.  The Fed AGI INCLUDES my Military retirement pay.  The income amount that Turbotax is basing my LA tax from is $10K MORE than the amount of my total income minus my military retirement pay.  How can I be taxed on MORE than I made?

[Critter-3]

Save a PDF and review  the form 540 line 7 and the Sch E where that amount comes from... does it show the reduction code 10E ?  

[majjohn4]

First, thanks for taking the time to respond/help. 

No code "10E" anywhere on the Form 540 or the Schedule E (except in the code description section at the bottom of the Schedule E)

Went back into the program again; same thing happened: won't allow the manual entry of the deduction; takes the entry back out, and there does not seem to be any way to override. 

[Critter-3]

Ok ... back to the federal section and delete the W-2 then reenter it and complete all the following screens in that section to indicate it is a military W-2 form   and  in the MY INFO section edit yourself  and indicate you are active military.  Then complete the state interview again.