According to the Iowa Department of Revenue, military retirement that is reported on your federal return, is excluded from your Iowa state return.
This exclusion is not automatically calculated by the program. You will have to manually enter this exclusion by going to:
- State Section
- Edit Iowa Return
- Subtractions from Income
- Military Retirement Pay Included on Your Federal Return and/or the difference in Federal to State taxable retirement income from IPERS (Iowa Public Employees Retirement System) - Enter Amount
- Continue