Military pension disability exclusion question.  I have a client receiving a military pension for years of service.  Three months military retirement, he was diagnosed as 70% disabled due to military activity.  Based on Pub 525, I believe the 70% should be excluded from his taxable military pension income.  However, his 1099R shows an amount, taxable amount (both the same) and a code 7 (normal distribution).  On the "General Rule" screen of the 1099R section within PTO, there are fields called "Exclusion percentage" and "Exclusion amount."  When I enter 70, .70 or dollar amount, PTO is not calculating/excluding any amount.  What am I doing wrong? How do I proceed?

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