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Military retirement pay

Taxable federally

Can You Write Off Military Retirement Pay?

Short answer: Yes: military retired pay is taxable federally, but VA disability compensation isn't, and many states exempt military pensions.

Combat-related special compensation is also tax-free.

Records to keep: Keep receipts, statements (1098, 1098-T, 1099, W-2G), and a note of what each cost was for. Compare itemizing to the 2026 standard deduction before you claim.