Vermont: Vermont taxes military retirement pay. If you're eligible, you may be able to subtract some of your taxable pension and retirement annuity income from your federal adjusted gross income. These veterans also may apply at any time and do not have to meet the September 1 filing deadline. There was a military pension division order which required the retired pay center – usually DFAS, the Defense Finance and Accounting Service – to make monthly payments to the spouse as a result of a 10/10 marriage (i.e., ten years of marriage during ten years of creditable military service toward retirement). Under current Maryland law, military retirement income is subject to personal income tax with the first $5,000 being exempt. Any other income earned while in Maryland is taxable to Maryland. In addition, military retirees who are over the age of 65, totally disabled, or who have a spouse who is totally disabled, receive an additional subtraction. A taxpayer of 65 may claim a non-refundable tax credit of up to $450.

The tax … Texas: Texas does not have personal income tax. 42 states provide various forms of exemptions for military personnel in order to help offset tax … Military retirement pay may be taxed in specific situations. According to the Maryland 2018 tax code, the maximum amount of military retirement income that can be subtracted from income is $15,000 for taxpayers over age 55 on Form 502SU. This is not correct. For example, 20 states do not tax military retirement at all, while 13 states only implement partial taxation. In 2021, 65% of benefits will not be taxed, and in 2022, West Virginians won't pay any tax on any of their Social Security retirement funds. This is not correct.

Utah: Utah treats military retirement income as taxable income. According to the Maryland 2018 tax code, the maximum amount of military retirement income that can be subtracted from income is $15,000 for taxpayers over age 55 on Form 502SU. Tennessee does not tax personal income; it taxes dividend and interest income only. However, Turbo Tax limited this subtraction to $8586 with an explanation that it is the Maximum Allowed (after Social Security/Railroad Retirement). If you are 65 or older or totally disabled (or your spouse is totally disabled), you may qualify for Maryland's maximum pension exclusion of $31,100 under the conditions described in Instruction 13 of the Maryland resident tax booklet. Fred L. Shinbur, chairman of the Maryland Veterans Commission, said Hogan’s proposal would mostly benefit career service members who put in the 20 years it takes to receive a full military pension. However, Turbo Tax limited this subtraction to $8586 with an explanation that it is the Maximum Allowed (after Social Security/Railroad Retirement). Under the governor's plan, there would be no Maryland tax on the first $50,000 of income for retirees with federal adjusted gross income under $100,000.