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Indiana - Military Retirement/Pension Income

Desktop · Written guide Content date 1 min read

For tax years 2022 and forward, Indiana allows a 100% deduction of military retirement income.

To deduct military retirement income from the Indiana individual tax return in Tax Processors Plus Desktop, from the Indiana Tax Return menu select:

  • Indiana Deductions
  • Other Deductions
  • Military Retirement/Survivors Benefits Deduction - Enter the qualified military retirement as a positive number. For MFJ returns, be sure to enter the amount in the taxpayer and/or spouse field as appropriate.

For tax years prior to 2022, please refer to the Indiana instructions for the allowable deduction.

Additional Information:

Indiana DOR: Bulletin #6 - Civil Service Annuity Adjustment and Military Retirement or Survivor’s Benefit Deduction 

Indiana DOR: Tax Forms and Instructions

Tax Processors Plus Desktop 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.