when you retire from the military are you tax exempt?
2007-10-01 11:32:15 · 13 answers · asked by eatenray 1 in Politics & Government ➔ Military
No, but the percentage of disability awarded to you by the VA entitles that percentage of your retirement to be tax differed for Federal Taxes.
IE, if you were to get say 30% disability, then 30% of your monthly retirement is not taxed.
It helps somewhat since most retired military generally go onto a second career and getting a small tax-break on your retirement helps...
2007-10-01 11:38:36 · answer #1 · answered by Anonymous · 2⤊ 1⤋
No, but some states do allow a tax deduction. For example, I live in North Carolina and get to deduct $4,000 on my state tax return. A while back some states used to exempt all federal pensions, but that changed.
Chief Petty Officer
USN, Retired
2007-10-01 11:54:46 · answer #2 · answered by Bill 6 · 2⤊ 0⤋
Nope - federal and state at least where I live.
Some states do allow an exemption on retired military pay.
Alabama, Alaska, Florida, Hawaii, Illinois, Kansas, Kentucky*, Louisiana, Massachusetts, Michigan, Mississippi*, Missouri*, Nevada, New Hampshire, New Jersey, New York, North Carolina*, Oregon*, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wisconsin and Wyoming.
* Special conditions apply
2007-10-01 11:41:59 · answer #3 · answered by Michael M 6 · 2⤊ 3⤋
Retirement is taxed but if you have a disability, which most people get, it's tax free throught the VA, doesn't make sense.
2007-10-01 12:15:30 · answer #4 · answered by freekin 5 · 2⤊ 0⤋
NO.you pay tax's on all retirement pay that is Fed/Tax.But some states you have to
pay a state tax on retirement pay. Now if you are a disability retirement you pay no tax.what ever money you receive is tax free.
2007-10-01 12:51:36 · answer #5 · answered by george 5 · 0⤊ 1⤋
No. And when you begin to receive a Social Security check as well, the military pension is considered to be outside income for determining the taxability of the Social Security check. At present, 85% of my Social Security check is considered to be taxable income.
2007-10-01 14:21:16 · answer #6 · answered by desertviking_00 7 · 0⤊ 1⤋
The percentage of disabilty which the VA awards is deducted from your federal tax
2007-10-01 12:31:03 · answer #7 · answered by Vicki1970 3 · 1⤊ 0⤋
Military (active) and retirement wages are taxable. You didn't think they would give them a break did ya?
g-day!
2007-10-01 12:08:21 · answer #8 · answered by Kekionga 7 · 1⤊ 2⤋
Nope, why should we get a free ride? Wasn't it such a privilege to serve? I thought it was.
2007-10-01 13:12:52 · answer #9 · answered by Anonymous · 1⤊ 1⤋
Absolutely NOT!!! Our government is way to concerned with bleeding every dime from its citizens to EVER allow that.
2007-10-01 12:21:29 · answer #10 · answered by Anonymous · 1⤊ 2⤋