Military retirement pay in District of Columbia
Varies
Does District of Columbia Tax Military Retirement Pay?
Short answer: Yes. D.C. fully taxes military retired pay received by the retiree; the old $3,000 exclusion for retirees age 62 and older ended after tax year 2014. Survivor Benefit Plan, RCSBP and RSFPP annuities are excluded from D.C. income for survivors age 62 or older. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; DC has no general retirement income exclusion.
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 District of Columbia
Varies
Individuals / Personal Taxes
Yes. D.C. fully taxes military retired pay received by the retiree; the old $3,000 exclusion for retirees age 62 and older ended after tax year 2014. Survivor Benefit Plan, RCSBP and RSFPP annuities are excluded from D.C. income for survivors age 62 or older. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; DC has no general retirement income exclusion.
Business justification
Yes. D.C. fully taxes military retired pay received by the retiree; the old $3,000 exclusion for retirees age 62 and older ended after tax year 2014. Survivor Benefit Plan, RCSBP and RSFPP annuities are excluded from D.C. income for survivors age 62 or older. Other retirement income: Pensions and 401(k)/IRA withdrawals are taxed as ordinary income; DC has no general retirement income exclusion. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions