Military retirement benefits subtraction

A retired servicemember may be able to claim a subtraction for all or part of the military retirement benefits that are included in their federal taxable income. In general, military servicemembers that are eligible for the subtraction are members of the uniformed services of the United States, which includes members of the armed forces as well as members of the Commissioned Corps of the National Oceanic and Atmospheric Administration and the Commissioned Corps of the Public Health Service. The armed forces include the Army, Navy, Air Force, Marine Corps, Space Force, or Coast Guard. The subtraction that may be claimed depends on the retired servicemember’s age at the end of the tax year.