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March 10, 2021
Question

military retirement in idaho

  • March 10, 2021
  • 1 reply
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I'm doing my Idaho state taxes. My military retired pay is not taxable but it doesn't ask me about it. Am I putting something in  incorrectly?

    1 reply

    DMarkM1
    March 10, 2021

    You are correct ID does have a deduction for part of military retirement benefits up to $36,132 ($54,198 if married filing jointly) if you meet one of the below criteria.

     

    - You must be age 65 or older, OR
    - You must be disabled and age 62 or older, OR
    - You must be the single surviving spouse of a qualifying retiree who meets the above age limitations.

     

    If you meet the criteria be sure you have indicated in the "My Info" section that you are "former" military (retired). 

    1. Then revisit the ID state interview
    2. Continue through and you will arrive at a page titled "Retirement Annuity" 
    3. You should click "Yes" for "Military Retirement". 
    4. The next box is where you put in the amount of military retirement distribution. 
    5. The next box click "Qualified" from the dropdown menu.

     

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    September 3, 2024

    Everything I read online says Idaho exempts military pension but the tax program only "reduces" the liability.  which is it?

    VolvoGirl
    September 3, 2024

    That sounds like the same thing.  If the pension is deducted from your income then the tax liability will go down.