Does Turbo Tax actually take out military retirement? It doesn't seem like the program recognizes I'm over 55 and doesn't take it out of Colorado State return.

Are you referring to SB17-075? This bill proposed in 2017 would have allowed the deduction of 10% of a military pension in the first year, then an additional 10% in each year thereafter, until 100% of the military pension would be excluded.

However, this bill was lost when the House Committee on Appropriations did not allow it to come forward for a vote.

Please see a more detailed discussion at https://r.search.yahoo.com/_ylt=A0geK9oCEDVdlXsAyZdXNyoA;_ylu=X3oDMTBydDI5cXVuBGNvbG8DYmYxBHBvcwM2BHZ0aWQDBHNlYwNzcg--/RV=2/RE=[phone number removed]/RO=10/RU=http%3a%2f%2fwww.unitedveteranscommittee.org%2fattachments%2farticle%2f210%2fFinalLegislativeReport2017-3.pdf/RK=2/RS=JZqeU0WpGGS27j5bH6hi07yvjag-

The result is that military pensions are still treated as they were before - "The rules for the taxability of military retirement benefits are the same as the rules for any retirement pension and annuity income. Persons who were 55 to 64 years of age as of December 31 may exclude up to $20,000 of their military retirement benefits received during the calendar year. Persons who were 65 years of age or older as of December 31, may exclude up to $24,000 of their military retirement benefits received during the calendar year. " See https://www.colorado.gov/pacific/tax/military-service-members-special-filing-information

The current TurboTax program handles a military pension in Colorado correctly, in that the military pension is lumped in with other pension income for the calculation of the up to $24,000 pension exclusion.