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You don't need to make any changes. When you make the election to have it considered earned for the credit, it doesn't change the nontaxable status of the pay.
TurboTax only considers that income for the credit.
If you would prefer to update the answer anyway here are the steps:
Thank you for the reply.
When I followed the steps you laid out, all I see is "
I'm sorry that it didn't work for you.
As long as you have the pay listed with the code "Q" in Box 12 of your Form W-2 entry screen, TurboTax will not include the amount in your income.
Here is another way to see that your combat pay is not taxed.
Here you should see that your nontaxable combat pay is excludedfrom your total income and taxable income. (You may need to add a few numbers from your W-2s to check this.)
Thank you for your service!
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