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PGbS
Level 1

Arizona Military retired pay exemption

Unless I'm incorrect, for tax year 2018, Arizona only allows for either a military retired pay exemption or a state employee retired pay exemption, but 2019 Turbo Tax Deluxe applies both exemptions.  Is this a change in Arizona law????  

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DawnC
Employee Tax Expert

Arizona Military retired pay exemption

Yes, last year, there was a $2500 subtraction allowed for all plans (Line29a).  In 2019, there is an additional $3500 subtraction allowed for the retired uniformed military (Line 29b).  

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