Arizona allows a subtraction for public pensions. To be eligible for the subtraction, your pension must be from one of the following sources:
- the United States Government Service Retirement and Disability Fund;
- the United States Foreign Service Retirement and Disability System;
- any other retirement system or plan established by federal law;
- the Arizona State Retirement System;
- the Arizona State Retirement Plan;
- the Corrections Officer Retirement Plan;
- the Public Safety Personnel Retirement System;
- the Elected Officials' Retirement Plan;
- a retirement plan established for employees of a county, city, or town in Arizona; and
- an optional retirement program established by the Arizona Board of Regents under Arizona Revised Statutes, and an optional retirement program established by an Arizona community college district.
You are allowed to subtract the amount you received or $2,500, whichever is less. You can only include the amount that was included on your federal return. If you are married filing joint and you and your spouse both receive such pension, you may both subtract what you received or $2,500, whichever is less. For more details regarding this subtraction, please see the instructions for Form 140.
- State Section
- Subtractions from Income
- Enter the amount in the entry box labeled for the correct qualified plan.