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.
To make this manual entry, please go to:
- Edit (three dots)
- Subtractions from Income
- Military Retirement and/or Survivors' Benefits Deduction