Military Pension Subtraction

You may qualify if your retirement pay is taxable on your federal return and was for any of the following:

• Service in the active component of the military (U.S. Code Title 10, sections 1401 to 1414)
• Retirement pay for service in the reserve component (U.S. Code Title 10, section 12733)
• Survivor benefit plan payments, including payments to a former spouse as part of a court order (U.S. Code Title 10, sections 1447 to 1455)

You may not claim this subtraction if you claim the Credit for Past Military Service.

Note: Pensions received exclusively from service as a Dual-Status Technician do not qualify for this subtraction.

Complete Schedule M1M, Income Additions and Subtractions.

Your military pension is combined with your other federal or civilian pensions. To determine your subtraction, you’ll need to find the percentage of your pension directly related to your qualifying past military service.

To find this percentage, contact the Office of Personnel Management (OPM) Retirement Services for a retirement benefit booklet. The booklet provides the years and months of military service along with the total years and months of creditable service.

U.S. Office of Personnel Management – Retirement Services
Phone: 1-888-767-6738
Email: retire@opm.gov

Your military pensions and other military retirement were taxable in Minnesota. Your pension became taxable once you became a Minnesota resident, even if you earned the pension before moving to Minnesota. If you moved out of Minnesota and established a new state of residence, your pension payments were not taxable to Minnesota after establishing your new residence.