1040 - Military Pensions



Are military pensions exempt from federal taxes?

 

Military pensions are generally subject to federal taxes. Most military retirees are not eligible to claim exemption from the withholding of federal taxes. Military retirement pay is treated as regular pay for income tax withholding purposes, though it may be treated as a pension or annuity for other tax purposes.

See Publication 505, Tax Withholding and Estimated Tax, for more information.