Arkansas does not tax military retirement income. The military retirement exclusion is separate from the Arkansas pension exemption for employer-sponsored retirement income of up to $6,000. If the military retirement income exclusion is more than $6,000, the pension exclusion cannot be taken for employer-sponsored retirement income. If the military retirement income being excluded is less than $6,000, the pension exclusion can still be used for the remaining amount of qualified non-military retirement up to $6,000.
In the tax return, the amount of military pension income needs to be entered in its menu, then the amount of taxable pension needs to be entered separately.
To enter the military pension in the Arkansas resident individual tax return in TaxSlayer ProWeb, from the Arkansas Return menu select:
- Subtractions from Income
- Military Retirement - Enter the military retirement as a positive number in either the Taxpayer/Joint or Spouse field as appropriate.
To enter the amount of the taxable retirement for the taxpayer and/or spouse, from the Arkansas Return menu select:
- Subtractions from Income
- Pension Exclusion
- Are you eligible for Retirement Exclusion - Select they are eligible from the drop down menu.
- Taxpayer/Joint - Enter the Eligible Gross Distribution - Enter the gross retirement amount eligible for the exclusion.
- Taxpayer/Joint - Enter the Eligible Gross Distribution - Enter the taxable amount net of the allowable exclusion.
Additional Information:
Arkansas Individual Income Tax Instructions
TaxSlayer Pro strives to keep the information on this page timely and accurate but makes no promise or guarantee about the timeliness, accuracy, or completeness of the contents of this page. This is general information and is not intended to be tax advice. You are encouraged to also review the underlying state resources and publications.