LA exempts military retirement.TurboTax tells me to "Enter your exempt military pay separately on a previous screen." It doesn't give a clue as to WHAT screen, or WHERE.

Forum|Forum|3 years ago
March 6, 2023
2 replies
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Every time I complete the Louisiana return, the military retirement is STILL shown as taxable income. In years past I have not had the problem with TurboTax. My wife has USAF and Federal DEA retirement income. I've been fighting this all afternoon. NEVER had this much trouble with TurboTax before.

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AmyC

You are correct, it is exempt. Follow these steps:

Open your return
Go into the LA state program
continue to Any Other Income Exclusions?
Select 10E for military
enter the amount
04E for federal retirement benefits.
enter the amount
continue through program

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AbitaOma

i have tried to do this and it keeps deleting my exempt retirement pay because it claims it has already made the adjustment from the import of data from my federal return, but it has not done that as evidenced by the AGI listed on the form view of the software.

BillM223

The way this works for most states, is that after you enter the data on your 1099-R in the federal return, IF you had already indicated that you lived in Louisiana, then the next screen would ask you for the source of the pension - this allows TurboTax to determine if the pension is taxable at the state level. You should identify the source of the pension here.

"i have tried to do this and it keeps deleting my exempt retirement pay because it claims it has already made the adjustment from the import of data from my federal return," - This sounds like you already marked the source on the federal return (i.e., the 1099-R interview).

"but it has not done that as evidenced by the AGI listed on the form view of the software. " - which AGI? the federal AGI? the pension amount is supposed to be there. Or are you talking about the state AGI?

@AbitaOma

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