HF137 Summary

• Allows military retirees to subtract $1,500 per year of military service (up to 20 years maximum) from state taxable income if they receive federal military retirement pay and do not claim an alternative credit under section 290.0677.

• Applies to individuals who receive compensation from a pension or other retirement pay from the federal government for military service computed under United States Code, title 10, sections 1401 to 1414, 1447 to 1455, or 12732 to 12733.

• The subtraction is not limited to the amount of compensation received from a pension or other retirement pay.

• For married couples filing jointly, each spouse is eligible for this subtraction.

• Effective for taxable years beginning after December 31, 2014.