And after you enter yoru Military W-2 form, there is a follow-up page with a whole page of checkboxes.
One of the checkboxes is one you have to check to indicate that the W-2 is for your Active Duty Military service.
That's the only way the software finds out you have a W-2 with income thar qualifies you for the Military deduction...as Free (for enlisted ranks) or reduced charge if you are in Officer ranks.