In 2019, the Indiana General Assembly passed a law to allow a progressive increase in the Military Retirement Income and/or Survivor’s Benefits Deduction.
Eligible DOR customers can deduct up to $6,250 plus an additional 25% of their military retirement income or survivor’s benefits over $6,250 for the 2019 tax year. The amount increases over the next three years as shown below:
- 2020 – $6,250 plus an additional 50% of eligible retirement/benefits received
- 2021 – $6,250 plus an additional 75% of eligible retirement/benefits received
- 2022 – 100% of eligible retirement/benefits received
Read more information on the Military Retirement Income and/or Survivor’s Benefits Deduction on our website or in the IT-40 instruction book and 2019 tax year forms.
