Question

military retirement in idaho

Forum|Forum|5 years ago
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?

DMarkM1

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).

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

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S

srogan

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

N

NCPERSON1

Yes, it goes down but is not eliminated. Exempt to me means it doesn't get taxed "at all". The tax program reduced the taxable amount. My pension for 2 retired military was 146K, but I was taxed on 61K. That means I'm still taxed, whereas the rule reads "exempt". They are not the same thing.

@srogan suggest reading this ID website;

https://tax.idaho.gov/taxes/income-tax/individual-income/popular-credits-and-deductions/idaho-retirement-benefits-deduction/

also, there was an attempt to make the military pension exempt from tax, but that failed to pass.

https://www.billtrack50.com/billdetail/1724098#:~:text=AI%20Summary,military%20member%20or%20their%20spouse.

please provide a link to a credible source to your statement that "the rule reads exempt" -