Is Maine Military Tax subtraction broken, or just overlooked?

Forum|Forum|4 years ago
March 16, 2022
1 reply
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TurboTax is not automatically adding a subtraction to my Maine tax return for military pay earned outside of Maine, even though I checked "active duty military pay" in the W-2 section. It should be non-taxable and refunded entirely. There appears to be nowhere to add it in manually and no check box for it when going through the credits and subtractions options.

TurboTax Self Employed Online

DanaB27

Yes, the first step it checking the active-duty box in the W-2 section.

Then when you get to the Maine state return:

On the "We've Recommended a Maine Residency Status" screen select "Change Residency"
On "Change Your Maine Residency" select "Safe Harbor Resident"
Continue through the questions
Verify that your military pay is entered on the "Nonresident Military Compensation Subtraction" screen