Military Retirement Pay Is Currently Taxable By Federal Government And Must Be Reported As Income For Federal Income Taxes
WASHINGTON DC – U.S. Senator Jacky Rosen (D-NV) joined Senator Pete Ricketts (R-NE) in the bipartisan Tax Cuts for Veterans Act to make military retirement pay tax-free at the federal level. Currently, military disability retirement pay and other veterans’ benefits are excluded from federal taxable income, but military retirement pay is taxable and must be reported as income for federal income taxes.
“Veterans sacrificed so much for our nation, and the least we can do is ensure they can retain all of their retirement pay,” said Senator Rosen. “I’m proud to join Senator Ricketts in bipartisan legislation to cut taxes for veterans by making military retirement pay tax-free federally. I’ll always work across the aisle to support Nevada’s veterans.”
“Eliminating state taxes on veterans’ benefits was a bipartisan idea in Nebraska, and Senator Rosen’s support makes it bipartisan in Washington as well,” said Senator Ricketts. “The Tax Cuts for Veterans Act would provide real relief as veterans and their families struggle to keep up with costs of living.”
Senator Rosen has been leading bipartisan efforts to support Nevada’s veterans. Earlier this year, she helped introduce bipartisan legislation to officially authorize the construction of a new veterans hospital in Reno, which she also successfully pushed the president to include in his 2024 budget request. Senator Rosen also introduced bipartisan legislation to permanently maintain a helpline for veterans to obtain information and assistance with all services from the VA.
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