Delaware allows a $12,500 subtraction of pension income for taxpayers age 60 and over. This includes military and non-military retirement and pension income.
For taxpayers under the age of 60, Delaware allows a subtraction of up to $2,000 for nonmilitary retirement income and up to $12,500 for military retirement and pension income.
TaxSlayer Pro automatically calculates the subtraction for taxpayers age 60 and over. For taxpayers under age 60, the program automatically subtracts up to $2,000 of nonmilitary retirement.
For a taxpayer under the age of 60, to exclude military retirement income from the Delaware individual tax return in TaxSlayer Pro, from the Delaware Tax Return Main Menu select:
- DE Addition/Subtractions
- Pension Exclusion
- Under 60 Pension (Military Pension) - Enter the full military pension as a positive number.
- Military Pension included in Pension Exclusion? - Answer Yes for taxpayer or spouse as appropriate.
Additional Information:
Delaware DOR: Individual Income Tax Return 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.