According to the Minnesota Department of Revenue, you may be able to exclude military retirement that is being reported on your federal return
**You may not claim this subtraction if you claim the Credit for Past Military Service on your Minnesota return.
This exclusion is not automatically calculated by the program when you create your Minnesota return. You will need to manually exclude this income by going to:
- State Section
- Edit Minnesota Return
- Subtractions From Income
- Military Pension or Other Retirement Military Pay
- Enter the amount that was taxable on the Federal return