Is all military retired pay excluded from Kentucky tax?

[DanielV01 · Accepted solution]

Usually, but not always.  Kentucky will exclude 41,110 of pension or retirement income from the return.  If you have an amount higher than that, Schedule P is used to determine the remaining taxable amount, depending on the type of pension pay that it is.  Here is additional information:  SCHEDULE P *1600010019* 2016 - revenue.ky.gov