Crazy, but the customer help in DC says to use the D-40B and request all the withholding back.  If that is rejected, then you file the D-40.  There is no way to do any of the things they tell you to do because the forms do not have the necessary lines..  The worst is completing the Form D-40B and then ProSeries will not let you print anything!! Four hours of trying with client sitting with me and I finally went to the DC website, found the form, filled it in and printed with no issues!  It cannot be efiled.What a nightmare it has been.  Military sources say you have to pay the taxes on the extra income but if T/P has a spouse, it is very easy to excuse them from DC taxes so why not the actual person in the military?