military retirement pension

[tkmfrazier]

I am military retiree; age 67. I am filing 2016, which I was 65. According to Oklahoma Tax law, I can deduct 10,000 or 75%, which ever is greater amount; my pension to file for Oklahoma Income. How and what do I do as far as putting in the computations? Do I subtract from my original pension amount of the 75%? HELP!

[MariP]

Hi @Carl,

As as veteran who has retired from the Air Force, I'm hoping that you might have some insights or guidance for @tkmfrazier to help answer his question around his military pension.

[Carl]

Because this is a state tax issue and my state doesn't tax personal income (FL) I unfortunately can't contribute anything useful here.

[LudwigVan_fan]

This is apparently late, but I just saw the questions.  According to the instructions, you enter the amount on Sch A:  instruction page 13

https://www.ok.gov/tax/documents/511Pkt-18.pdf

https://www.ok.gov/tax/documents/511-2D-2018-UF-VerCtl.pdf

Military Retirement

Each individual may exclude the greater of 75% of their retirement benefits or $10,000, but not to exceed the amount included in the Federal Adjusted Gross Income. The retirement benefits must be from any component of the Armed Forces of the United States.

Comment:  The instructions are not very clear, but it appears you would enter into Sch A, 75% of the gross pension...but not to exceed the amount included the Federal Adjusted Gross Income.  Thus it appears if your gross pension is $25,000, you could deduct $18,750...as long as $18,750 was included in your AGI of your Federal Income Tax return.