Military Pension Subtraction

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

• 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.

It depends on your income and military retirement pay.

You are eligible for the military pension subtraction only if you have received computed retirement pay under provision Chapter 71 (section 1401-1414) of Title 10.

Refer to the "Who Qualifies" tab for other retirement pay that may qualify. 

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

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