IN SB0025

Provides a 100% income tax deduction for all military service income, including retirement and survivor's benefits, received by an individual or their surviving spouse.

Removes the minimum age requirement (previously 60 years old) for individuals to claim deductions on military retirement or survivor's benefits.

Defines "military service income" as all income received for service in active or reserve components of U.S. armed forces, including Army, Navy, Air Force, Coast Guard, Marine Corps, Merchant Marine, Indiana Army National Guard, or Indiana Air National Guard.

Excludes from the deduction any qualified military income that is already subtracted from federal adjusted gross income under a separate provision (IC 6-3-1-3.5(a)(21)) to prevent double deduction.

Effective January 1, 2015 for taxable years beginning after December 31, 2014.