Military income recipients may be eligible to claim one or more of the three deductions based on the type of income/benefits they get.
1. Military Service Deduction (including the National Guard and reserve component of the armed forces) Individuals with military pay from active duty, National Guard, and/or the reserve component of the armed forces, may be eligible to deduct up to $5,000 of that income. See the Military Service Deduction to find out if you qualify for this deduction.
2. Military Retirement Income and/or Survivor’s Benefits Deduction
Individuals with military retirement income and/or survivor’s benefits may be eligible to deduct up to $6,250 of those benefits (increased from $5,000). Also, no longer is there a minimum age requirement to be eligible for the military retirement income deduction. See the new Military Retirement Income and/or Survivor’s Benefits Deduction information to see if you qualify.
3. National Guard and Reserve Component Members Deduction
This deduction is available for qualified military income received after your Indiana National Guard unit is federalized or your reserve component was mobilized and deployed for full-time service. See the National Guard and Reserve Component Members Deduction to see if you qualify for this deduction.