Getting out, military retirement, military to civilian transition - Marine Corps Times

Quick Links

http://marinecorpstimes.com/benefits/getting_out/online_hbml08_retirement_other_taxes/
benefits/getting_out/online_hbml08_retirement_other_taxes

Other benefits: Taxes



Most retirement pay is subject to federal income taxes. So are SBP benefits. Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax.

VA benefits are not taxable because they generally are for disabilities. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.

Individual states have their own rules regarding military retired pay. Some follow federal guidelines. Others have no tax on military retired pay or grant exemptions.

For guidance, check with the revenue service in the state where you claim residency. Retirees also can have state income taxes withheld from their military retirement pay.

Contests and Promotions

Military Times Gear Shop


promo Shop now...
for the world's finest in military & police apparel, gear, and accessories provided by US Cavalry at the new Military Times Gear Shop

Service Members Of The Year


promo Nominate your hero
Nominations have begun for the 2009 Service Members of the Year awards. Tell us about your unsung hero today.

Marketplace

Mil-Mall


promo No Greater Love
"A wonderful way to explore the nature of service and the meaning of Patriotism." – United States Senator John S. McCain

Military Discounts


Save on your purchases!
In honor of your military service, you can find regular and name brand products at a special discount.

Shoplocal

  Shop Local
Local Online Deals
Find the best deals at your local stores.