The Military Pension Protection Act would allow military service members and their beneficiaries to exclude military pensions and annuities from their taxable income. Under current law, military pensions are treated like other income and subject to federal income tax, but this bill would exempt them entirely from gross income calculations. The change would apply to all members of the Armed Forces receiving pensions from the federal government, whether they are active recipients or surviving beneficiaries of deceased service members. The tax exemption would take effect for any taxable year beginning after the bill is enacted into law. This legislation would reduce the federal government's tax revenue by eliminating income taxes on military pensions, though the bill does not specify an estimated cost or provide a funding mechanism to offset the lost revenue.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.