INDIANA – New for this year’s Indiana Individual income tax return is a deduction for military pay earned by Hoosiers who are active or reserve members of the Armed Forces of the United States or the National Guard.
File and pay your state and federal tax returns by Monday, April 15, 2024.
Retired military service members or their surviving spouses may also be eligible for this deduction.
This deduction equals the actual military income received (i.e., military pay, retirement pay, and survivor’s benefits) or $5,000, whichever is less. If a service member and their spouse received military income, they may each claim the deduction for a maximum of $10,000.
Before 2023, the exemption was only for the period military service members were mobilized or deployed. Find more information in Information Bulletin #27.
Additional guidance for military service members, including due dates and extensions of time to file for those serving in a combat zone, choosing the proper form, and paying Indiana county taxes, is available.
