Tax Deductions Help Hoosier Veterans

Tuesday, February 2, 2021 at 10:51 AM

By Indiana Department of Revenue, news release

A bill signed by Gov. Holcomb in 2019 allows Veterans to deduct more for military retirement funds.

Shutterstock photo.

(Indianapolis, Ind.) - Military retirees and surviving spouses may experience a larger tax deduction from their military retirement funds this individual income tax season due to a 2019 Indiana tax law, advises the Indiana Department of Revenue (DOR).

Gov. Eric Holcomb signed House Enrolled Act (HEA) 1010 in the summer of 2019 to allow eligible taxpayers to deduct up to $6,250 plus an additional 50% of their military retirement income or survivor’s benefits for the 2020 tax year. This is an increase of 25% since 2019 and the deducible amount will continue to increase by 25% each year until 2022 when 100% of the amount received will be eligible for the deduction.  

To claim the Military Retirement Income or Survivor’s Benefits Deduction, use Schedule 2 (or Schedule C if filing Form IT-40PNR) from the Indiana individual income tax return. Information on calculating the amount to deduct is available in tax instruction booklets, which are available online.

More information on this deduction, tax information for current military service members, the latest tax forms and instructions for the 2020 tax year are available on DOR’s website at

Customers with questions about individual income tax season are encouraged to visit or email Customer Service at

More from Local News


Lane Closure Scheduled Along I-74 in Dearborn County

Median cable barrier installation will take place this week near the West Harrison exit.

Ohio County Names 2024 Lilly Scholarship Winner

Congratulations to Rising Sun HS senior Alyssa Simpson.

Perfect North Slopes Opens Saturday

Terrain will be limited on Opening Day.

Local Sports Report - November 30, 2023

Report missing stats and scores to

Local Sports Report - November 29, 2023

Report missing high school sports scores and stats to

EC's Bruss to Play Softball at Ashland University

Bruss was voted EC's Most Valuable Player last spring.

On Air

Brad Paisley I'm Gonna Miss Her - EAGLE ONLY 2:26
Luke Bryan I See You 2:23
Midland and Jon Pardi Longneck Way to Go 2:19
Ronnie Milsap X - Silver Bells 2:16