JamesG1
Employee Tax Expert

State tax filing

In TurboTax, I was able to claim the Subtraction for military pensions or other military pay in the Minnesota state income tax return. 

 

In TurboTax, in the Minnesota state income tax return, at the screen Tell Us About Any Income Adjustments, select Received compensation from a military pension or other military retirement pay.

 

The Subtraction is reported on the Minnesota form M1 Individual Income Tax on line 7.

 

The Subtraction is also reported on the Minnesota form M1M line 25 Subtraction for military pensions or other military retirement pay on line 25.

 

Minnesota Military Pension Subtraction may be found here.

 

You may qualify if your retirement pay is taxable on your federal return and was for any of these:

 

  • Service in the active component of the military (U.S. Code Title 10, sections 1401 to 1414)
  • Retirement pay for service in the reserve component (U.S. Code Title 10, section 12733)
  • A divorcee who receives a portion of their former spouse’s military pension through their divorce settlement is eligible to subtract that income to the extent it is included in FAGI.
  • Survivor benefit plan payments, including payments to a former spouse as part of a court order (U.S. Code Title 10, sections 1447 to 1455)

Note that you may not claim this subtraction if you claim the Credit for Past Military Service.

 

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