I have a New Yorm employee that received a W2 with code MNA in Box 14. The instructions for the MNA code in box 14 on the W2 states that "Military Pay exempt from NYS incometax as provided by NYS Tax Law, net of deduction code 411, Defered Compensation DMNA.

So on the NYS return under subtractions, Page 2, Line 31, under subtraction S-119 Military Pay, I entered the amount and get there error message Other Additions/Subtractions Stmt (225): Subtractions - Code S-119 should not be entered for an IT-201 filer.

Is this income not taxed by NYS? Am I entering it wrong? 

Please help!