According to the Arkansas Instructions and Military Retirement Exemption (Act 141 of 2017): "Beginning with tax year 2018, retirement benefits received by a member of the uniformed services as defined in this Act are exempted from income tax. Retirees cannot claim the $6,000 exemption for traditional or employer sponsored distributions if their military retirement exemption exceeds $6,000. If the military retirement exemption is less than $6,000, the remaining amount of the exemption may be taken for traditional or employee sponsored distributions. Please see instructions for lines
18A and 18B for details".
When creating your Arkansas state return, you will be asked, "Does the Taxpayer and/or the Spouse Qualify for a Pension Exclusion?". You will be able to subtract this retirement income on this page. However, beginning with tax year 2019, you will not be able to claim both the military retirement exemption and the $6,000 exemption for traditional IRA distributions.
Program Entry
- State Section
- Edit the Arkansas state return
- Subtractions from Income
- Military Retirement