If the income on line 1 of Form IT-40 includes military retirement income and/or survivor’s benefits, you (and/or your spouse if married filing jointly and both qualify) may be eligible to take the Military Retirement Income and/or Survivor’s Benefits Deduction. For 2022 and later, the deduction is equal to the entire amount of military retirement income and/or survivor’s benefits.
This subtraction is not automatically calculated. You will have to manually enter the deduction amount within your Indiana return.
Indiana Department of Revenue information bulletin
Program Entry
To make this manual entry, please go to:
- State
- Edit (three dots)
- Subtractions from Income
- Military Retirement and/or Survivors' Benefits Deduction
- Save