Military retirees and surviving spouses may experience a larger tax deduction from their military retirement funds this individual income tax season due to a 2019 Indiana tax law. On February 1, the Indiana Department of Revenue (DOR) issued information on the increased individual income tax deduction for Hoosier veterans. The DOR explains:
- The individual income tax deduction for military retirement funds is increased to $6,250 plus an additional 50% of the military retirement income or survivor’s benefits for the 2020 tax year. In addition, there will be a 25% further increase per year until 2022 when 100% of the amount received will be eligible for deduction.
- The deduction is claimed by filing Schedule 2 or Schedule C, if filing Form IT-40PNR from the Indiana individual income tax return.
Please contact your Somerset advisor at 317.472.2200 or with any questions.
