If you received one Form W-2 from DFAS, part of which was for active duty and part for reserve duty, check that the W-2 was for active duty.
Why? Because at least part of it was for active-duty. The program asks this question to prompt additional questions that might affect your tax situation. If they apply to your AD service (or don't), answer accordingly.
I am in a similar situation: my single W-2 contains mostly reserve duty pay and some active duty pay. I am an Arizona resident, so only the reserve pay is taxable (AZDoR Pub 704, Q26). When I check that the W-2 is active pay (as advised above) in TurboTax, the Arizona form states I owe no taxes at all. This seems incorrect to me. Please advice.
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