According to the West Virginia instructions, military retirement income is fully exempt from state income tax. You may subtract the taxable amount of retirement income reported on your federal return that was received from the Defense Finance and Accounting Service (DFAS).
This exclusion also applies to:
- Retired pay from the Armed Forces, Reserves, and National Guard
- Survivor Benefit Plan (SBP) annuities
To find this entry within your West Virginia return, please go to:
- State Section
- Edit West Virginia Return
- Subtractions from Income
- Enter eligible Military Retirement Modification