Questions & Answers
What is the Military Pension Subtraction?
Minnesota allows taxpayers who received a military pension or other military retirement pay a subtraction for the amount of the retirement pay. To qualify for this subtraction, the retirement pay must be taxable on the federal return, AND be for one of the following:
- Service in the active component of the military,
- Retirement pay for service in the reserve component, or
- Survivor benefit plan payments.