Questions & Answers

What is the Military Pension Subtraction?

Beginning in 2016, Minnesota will allow 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.