Is military retired pay taxable in Virginia?

Forum|Forum|6 years ago
June 3, 2019
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TurboTax Deluxe Windows

BillM223

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

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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..