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Indiana - Military Retirement/Pension Income

Online · 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 Online, from the Indiana Return menu select:

  • Subtractions from Income
  • Military Retirement and/or Survivor's Benefits Deduction - Add together the military retirement income and survivor’s benefits and enter as a positive number.

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 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.