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February 6, 2021
Question

Ky state tax exempt for active duty military

  • February 6, 2021
  • 1 reply
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I am filing for 2020 and I am active duty military in Kentucky. I have checked the "active duty military" block after the w2 information. However, turbotax is calculating that I owe state taxes on that income. How do I fix this?

    1 reply

    February 6, 2021

    Please be aware if your military income is your only Kentucky income then you are not required to file a Kentucky state tax return. Therefore, only file a Kentucky return if you have other Kentucky income or had state withholdings on your military pay.

     

    After going through the Kentucky return TurboTax automatically subtracts your military income please verify if this happened:

    1. Click on "Tax Tools" in the left menu
    2. Click "Tools"
    3. Click "View Tax Summary" in the Tool Center window
    4. Click on "KY Tax Summary" on the left
    5. Look at "Subtractions from income" this should be the amount of your military pay unless you qualify for other substations

     

     

    If TurboTax doesn't calculate this please verify your entry about your state in my info:

    1. Login to your TurboTax Account 
    2. Click "My Info" from the left side of your screen
    3. Click “Edit” next to your name
    4. Please scroll down to “2. Tell us the state(s) you lived in”  Verify you have entered Kentucky.

     

    Also verify your entry on your W-2 that you have entered KY in the State field box 15:

    1. Login to your TurboTax Account 
    2. Click on the Search box on the top and type “W-2”
    3. Click on “Jump to W-2”

     

     

    You might have to delete and reenter you state return.

     

    If all this doesn't help you might want to contact TurboTax for more direct help please see What is the TurboTax phone number?

     

     

     

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