Military Retirement Pay Partial Tax Exclusion
Military Retirement Pay Partial Tax Exclusion: Up to $20,000
Starting January 1, 2025 (through 2029), California allows eligible taxpayers to exclude up to $20,000 of federal military retirement pay from state taxable income each year.
Details
Starting January 1, 2025 (through 2029), California allows eligible taxpayers to exclude up to $20,000 of federal military retirement pay from state taxable income each year. To qualify, adjusted gross income must be under $125,000 for an individual or $250,000 for joint filers or surviving spouses.
Restrictions
New benefit enacted 2025; expires December 31, 2029 unless extended. Claimed on Schedule CA (540) Part I Section B line 3. Search "AB 80" on ftb.ca.gov for full details.
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