In Colorado, a retired servicemember under the age of 55 can claim the military retirement subtraction up to a maximum of $15,000 (for tax years 2022 through 2028).
Retired servicemembers aged 55 and over, as well as taxpayers of any age who receive a death benefit or annuity, can claim the regular pension and annuity subtraction. The amount of the allowable exclusion is based on the taxpayer's age as follows:
- Taxpayers who qualify and are under the age of 65 as of the last day of the tax year can subtract the lesser of $20,000 or the taxable pension and annuity income included in their federal taxable income.
- Taxpayers over the age of 65 as of the last day of the tax year are allowed to subtract the lesser of $24,000 or taxable pension and annuity income included in their federal taxable income. Additionally, the amount of the pension exclusion is coordinated with the social security benefits exclusion. See the instructions for how much is allowable in a return that includes both pension and annuity income and social security benefits.
To subtract military retirement income in the Colorado resident individual tax return in TaxSlayer Pro, from the Colorado Tax Return Menu select:
- Subtractions from Federal Taxable Income
- Retirement Exclusion
- Eligible Pension Income - Enter the military retirement as a positive number.
Additional Information:
Colorado Retired Servicemembers
Income Tax Topics: Military Servicemembers
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.