military retirement pension

Forum|Forum|7 years ago
October 17, 2018
2 replies
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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

Employee

Hi @Carl11_2,

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.

Carl11_2

Employee

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

Employee

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.

**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**