Military retirement pay in Colorado
Varies
Does Colorado Tax Military Retirement Pay?
Short answer: Partly. Retirees under age 55 can subtract up to $15,000 of military retirement pay (tax years 2022 through 2028). At age 55 to 64 they use the general pension subtraction of up to $20,000, which rises to $24,000 at age 65. The general pension subtraction is also available under age 55 for pension income received as a death benefit, which can cover survivor annuities. Other retirement income: Taxpayers 55–64 may subtract up to $20,000 and those 65+ up to $24,000 per person of pension, annuity, and IRA/401(k) income (the same cap also covers taxable Social Security).
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 Colorado
Varies
Individuals / Personal Taxes
Partly. Retirees under age 55 can subtract up to $15,000 of military retirement pay (tax years 2022 through 2028). At age 55 to 64 they use the general pension subtraction of up to $20,000, which rises to $24,000 at age 65. The general pension subtraction is also available under age 55 for pension income received as a death benefit, which can cover survivor annuities. Other retirement income: Taxpayers 55–64 may subtract up to $20,000 and those 65+ up to $24,000 per person of pension, annuity, and IRA/401(k) income (the same cap also covers taxable Social Security).
Business justification
Partly. Retirees under age 55 can subtract up to $15,000 of military retirement pay (tax years 2022 through 2028). At age 55 to 64 they use the general pension subtraction of up to $20,000, which rises to $24,000 at age 65. The general pension subtraction is also available under age 55 for pension income received as a death benefit, which can cover survivor annuities. Other retirement income: Taxpayers 55–64 may subtract up to $20,000 and those 65+ up to $24,000 per person of pension, annuity, and IRA/401(k) income (the same cap also covers taxable Social Security). Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions