Is military retired pay taxable in Virginia?

[BMcCalpin]

It does not appear that Virginia has an exclusion for military retirement pay - unless you are a Medal of Honor winner (seriously). See the link below (it's on the same page).

There is a general exclusion for those over 65 of $12,000, which can be limited based on the rules described at https://www.tax.virginia.gov/subtractions#age-deduction

[RichN]

There is a new Tax Law in Virginia effective for your2022 income which provides up to a $10k deduction on Virginia income if you are 65 or older and receive retired military pay.  You MUST enter this data proactively.  TurboTax does NOT ask this obvious question but should.  There is NO prompt from TurboTax as of today (2/19/2023) for this Virginia deduction.  Perhaps, it will be included in a future update and hopefully added for next year!  Go to the Virginia tax section "Here's the income that Virginia handles differently" then drop down to "Military" then "Military Benefits Subtractions" and enter the required information..

[RichN]

Sorry, should be "55" vs "65" for the age requirement.

[Wolfman32]

 Virgina says about military retirement benefits - are they taxed?:

No. In order to claim a Military Benefits Subtraction (also known as the Military Retirement Subtraction), the eligible military benefits subtracted must be included as income on your federal income tax return and you may only subtract up to:

$20,000 of eligible military benefits on your tax year 2023 return;

$30,000 of eligible military benefits on your tax year 2024 return; and

$40,000 of eligible military benefits on your tax year 2025 and later returns.

[Wolfman32]

This may help.  I did not realize that turbo tax does not fully understand Virginia tax laws and I've been missing out on this deduction.

To claim the military retirement income subtraction in Virginia, eligible taxpayers must report thei...12.