Delaware - Military Retirement/Pension Income

Delaware allows a $12,500 subtraction of pension income for taxpayers age 60 and over. This includes military and non military retirement/pension income.  For taxpayers under the age of 60, Delaware allows a subtraction of up to $2,000 for nonmilitary retirement income and up to $12,500 for military retirement/pension income.

Tax Processors Plus Online automatically calculates the subtraction for taxpayers age 60 and over. For taxpayers under age 60, the program automatically subtracts up to $2,000 of nonmilitary retirement.

For a taxpayer under the age of 60, to exclude military retirement income from the Delaware individual tax return in Tax Processors Plus Online, from the Delaware Return menu select:

• Subtractions from Income
• Pension Income Exclusion
• Under Age 60 and received a Military Pension Income included on the Federal return - Enter the full military pension as a positive number
• Military Pension included in the Pension Exclusion above? - Select Yes for taxpayer or spouse as applicable.

Additional Information:

Delaware DOR: Individual Income Tax Return Instructions

Tax Processors Plus Online strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.