Military retirement pay in Iowa
Varies
Does Iowa Tax Military Retirement Pay?
Short answer: No. Iowa fully exempts military retired pay from state income tax. Other retirement income: Since 2023, retirement income including pensions, 401(k)s, and IRAs is fully excluded for taxpayers 55+, disabled taxpayers, and surviving spouses/survivors of eligible individuals.
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 Iowa
Varies
Individuals / Personal Taxes
No. Iowa fully exempts military retired pay from state income tax. Other retirement income: Since 2023, retirement income including pensions, 401(k)s, and IRAs is fully excluded for taxpayers 55+, disabled taxpayers, and surviving spouses/survivors of eligible individuals.
Business justification
No. Iowa fully exempts military retired pay from state income tax. Other retirement income: Since 2023, retirement income including pensions, 401(k)s, and IRAs is fully excluded for taxpayers 55+, disabled taxpayers, and surviving spouses/survivors of eligible individuals. Military retired pay is taxable federally; VA disability compensation isn't taxed federally or by any state.
Category
- Personal Tax Deductions