Learn how your retirement benefits could be taxed Federally and in some states. Veterans could claim disability. And finally, learn about some tax credits you might be eligible for.
kiplinger.com ~ "Some Veterans are unsure about how their military service affects their taxes. The fact is that military retirement pay is taxable at the federal level, while disability compensation benefits and disability retirement pay are generally exempt. Additionally, most states don't tax military retirement income or they only partially tax it.
The earned income tax credit (EITC) is often overlooked by eligible Veterans and military households, as well as individuals with disabilities, those living in nontraditional homes, and households with no children.
Most states fully exempt military retirement income from state income tax. As mentioned, however, when it comes to tax treatment, some states don’t favor military income. And other states only offer partial tax breaks to Veterans in terms of how military retirement income is taxed.
States that still partially tax retirement income include Delaware, Georgia, Idaho, Kentucky, Maryland, Montana, New Mexico, Oregon, Vermont, and Virginia. The District of Columbia and California still fully tax military pensions." ~ kiplinger.com
For the complete list of tax breaks, please click the article below: