Election to Exclude Military Retirement Benefits - Nebraska ... 2026

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  1. Click ‘Get Form’ to open the Election to Exclude Military Retirement Benefits form in the editor.
  2. Begin by entering your First Name, Initial, and Last Name in the designated fields. Ensure that you print clearly for accurate processing.
  3. Fill in your Current Mailing Address, including Number and Street or PO Box, City, State, and Zip Code.
  4. Provide your Social Security Number and Date of Birth. This information is crucial for identification purposes.
  5. Indicate your Date of Retirement by referencing your DD Form 214 or equivalent documentation.
  6. Choose between Option 1 (40% exclusion for seven years) or Option 2 (15% exclusion starting at age 67) based on what benefits you wish to elect.
  7. Attach any required official documentation proving your retirement date and eligibility. This may include a copy of your DD Form 214 or retirement orders.
  8. Sign and date the form where indicated, providing your daytime phone number and email address for any necessary follow-up from the Department.

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A Payments you receive as a member of a military service generally are taxed as wages except for retirement pay, which is taxed as a pension. If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 5a and 5b of Form 1040 or Form 1040-SR.
Beginning in 2023, though, military retirement income is fully exempt from tax. However, this exemption and the general retirement plan exemption cant exceed the amount of military retirement income received in the tax year.
The following states already do not tax military retirement pay at all: Alabama, Connecticut, Hawaii, Illinois, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, New York, North Dakota, Ohio, Pennsylvania, West Virginia and Wisconsin.

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Military pensions are fully exempt if you retired before 1997. Personnel retiring after 1997 are subject to taxation to the extent their pension exceeds $41,110. Retirees are able to exclude the first $5,000 ($15,000 if 55 and older) of their military pension benefits. Military retirement pay exempt as of 2022.
States that dont tax military retirement pay include: Alabama. Arkansas. Connecticut. Hawaii. Illinois. Iowa. Kansas. Louisiana.
Our commitment to one-on-one interactions is a cornerstone to this success and one of the many reasons Nebraska is truly a military-friendly institution.
Stationed in California Military servicemembers whose domicile is California are residents of California and are subject to tax on all income, regardless of source, while stationed in California on permanent military orders.
Income Tax Brackets Head of HouseholdNebraska Taxable IncomeRate$0 - $6,2202.46%$6,220 - $31,9903.51%$31,990 - $47,7605.01%1 more row Dec 23, 2021

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