PattiF
Expert Alumni

Retirement tax questions

You will need to specifically identify your military pension so that TurboTax can treat it differently from other pension amounts
 

Note that other pensions are allowed a $10,000 exclusion subject to modification by Social Security, etc. But, as you say, starting in 2016, military retirement pay is completely exempt from Maine income tax.

 

  • First, go to the state interview for Maine. Go through the interview until you see a screen entitled "Retirement Income and Contributions". 
  • Check "yes" for the first questions.
  • When you hit Continue, you will see a new screen entitled "Pension Income Deduction". Enter your military pension amount here. 
  • This will remove your entire military pension from Maine taxable income.
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