For 2023, Indiana made all military income earned by Reservists and National Guard members tax exempt. Active duty income remains the same as it was until 2024, $5000 deduction and the rest of their military income is taxable. In 2024, active duty military income becomes tax exempt. When entering the W-2 information, the only option to check is Active Duty. This automatically enters the $5000 deduction on the Indiana IT-40 Schedule 2 but you have to manually enter the Reserve/Guard income deduction. Are there plans to add a field for Reservists/Guard either on the federal or state information worksheet and make an automatic entry on Schedule 2?
Unfortunately, Intuit doesn't tend to share their plans with any customers. All you can do is wait and see if that happens with an update. You could try calling support, but the odds of getting ahold of a support person that would actually know the answer is probably less than 3%.
In Ohio military pension is exempt from Ohio tax and the program does not exclude it automatically. Up to the preparer to know about this and enter it. My guess this will be the same for Indiana.
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