Men and women retiring from a career in the military usually have been posted all over the country if not all over the world during their time in the armed forces. When looking for a place to settle in retirement, state laws on military retirement taxes
retirees should consider a state's total tax burden before choosing to move there. While a state might not tax your military retirement pay, you might receive other income that does get taxed or have to pay high property taxes if you own a home. ...
Then there are 13 states that partially exempt military retirement pay. As an example, Maryland will exempt military retirement pay from taxation for earnings of $5,000 and less. Colorado is more lenient in this regard, as up to $24,000 is given a tax exemption, depending on retirees’ ag...
some types of pay arenot taxable(i.e. allowances for uniforms and Reserve Officers' Training Corps, or ROTC) and there are severaltax-free expensesyou do not have to report on your tax return. However, some military pay is taxable and soldiers may pay federal...
Pensions:Taxable (Minnesota allows a deduction for Military retirement pay) 401(k) and IRA Distributions:Taxable More:States Announce Major 2025 Tax Changes: What It Means for Your Money Sponsored Content (Image credit: Getty Images) Mississippi taxes on retirement ...
Military retirees to get state tax break ; Strickland to sign legislation exempting retirement pay from state income tax.William Hershey Staff Writer
Taxable qualified retirement plan distributions Examples of situations not included in a simple Form 1040 return: Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions Unemployment income reported on a ...
Some states don’t collect any state taxes on military pay. If you’re a veteran/military retiree, then yourretirement pay may not be taxedat all as well. Note:Some states offer additional tax benefits, like Minnesota, which offers a bonus $120 per month (or partial month) you’re deplo...
Missing Out on the Saver’s Credit. TheRetirement Savings Contribution Creditis available to many service members – particularly those in lower pay grades. Even at higher pay grades, a large portion of military compensation is non-taxable, so it doesn’t count against the income limit for this...
Active duty military personnel serving outside of the U.S. or Puerto Rico:These servicemembers qualify for an automatic two-month extension and do not need to file Form 4868. Taxpayers affected by disaster:If the President declares a disaster in a particular area, the IRS can postpone deadlin...