Military retirement pay in Arkansas
Varies
Does Arkansas Tax Military Retirement Pay?
Short answer: No. Arkansas fully exempts military retired pay from state income tax (since tax year 2017). Other retirement income: Each taxpayer may exclude up to $6,000 of retirement income from employer pensions/plans and IRA distributions taken after age 59½ (one combined $6,000 limit per person).
Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Records to keep: Keep your state return, W-2s and 1099s (1099-R, SSA-1099), and any state credit worksheets. Check your state revenue department's current-year instructions before you file.
Military retirement pay in Arkansas
Varies
Individuals / Personal Taxes
No. Arkansas fully exempts military retired pay from state income tax (since tax year 2017). Other retirement income: Each taxpayer may exclude up to $6,000 of retirement income from employer pensions/plans and IRA distributions taken after age 59½ (one combined $6,000 limit per person).
Business justification
No. Arkansas fully exempts military retired pay from state income tax (since tax year 2017). Other retirement income: Each taxpayer may exclude up to $6,000 of retirement income from employer pensions/plans and IRA distributions taken after age 59½ (one combined $6,000 limit per person). Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions