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?