Affidavit for military exemption from excise tax

Share on LinkedIn

Summary of Indiana Military and Veterans Benefits: Indiana offers special benefits for service members, Veterans and their families including state income tax exemptions, military retired pay and property tax exemptions, education and tuition assistance, special military vehicle tags, as well as hunting and fishing license and state park privileges. Eligibility for some benefits may depend on residency, military component and Veteran disability status.

Indiana Department of Veterans Affairs, County Veterans Service Offices (CVSO): Indiana CVSOs are a local point of contact who can assist Veterans, retired service members and their families find and apply for Veteran’s benefits under federal, state and local laws. All their services are provided free of charge.

Indiana State Military and Veterans Benefit Highlights and Eligibility

Welcome to Indiana sign

What are my Indiana Military and Veterans State Tax Benefits?

F16s in formation

Indiana Income Tax on Military Pay: Indiana resident service members serving in an active or reserve component of the U.S. Armed Forces are eligible for an income tax deduction of $5000 for their military pay.

Service members on duty outside of the U.S. and Puerto Rico, filling Indiana income tax, are authorized an automatic 60 day extension to file taxes. Those assigned to a combat zone have 180 days after redeployment to file their Indiana income taxes.

Military pay earned while in a combat zone is exempt from Indiana income tax.

*Recent Legislative Changes* Beginning in the 2024 tax year military pay received by an Indiana resident service members serving on active duty in the U.S. Armed Forces is exempt from state income tax.

Beginning in the 2023 tax year military pay received by an Indiana resident service members serving in the National Guard, or the U.S. Armed Forces Reserves is exempt from state income tax, regardless of mobilization status. This exemption also applies to wages earned as a military technician (dual status).
Indiana Department of Revenue, Income Tax Information Bulletin #27

Indiana National Guard and Reserve Component Service Member Pay Income Tax Deduction: Resident service members serving in the Indiana National Guard or the U.S. Armed Forces Reserves are eligible to deduct all military pay from their Indiana Income tax if they are called to federal active duty.
Indiana Department of Revenue, Information Bulletin #27, Indiana Adjusted Gross Income Tax Applicable to Military

Indiana Income Tax on Military Retired Pay: Military retired pay is exempt from Indiana Income tax.

Indiana Nonresident Military Spouse Earned Income Deduction: Nonresident military spouses do not have to pay Indiana income tax for wages earned in Indiana.
Who is eligible for the Indiana Nonresident Military Spouse Earned Income Deduction?
To be eligible nonresident military spouses must meet the following requirements:

To claim this deduction the military spouse must file a completed Indiana Department of Revenue, Nonresident Military Spouse Earned Income Deduction, Schedule IN-2058SP. The military spouse will still be required to file income taxes in their state of residence, if required.

Indiana Taxes on Military Disability Retirement Pay: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include:

Indiana State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC): DIC is a tax-free monetary benefit paid to eligible survivors of U.S. Armed Forces service members who died in the line of duty or eligible survivors of Veterans whose death was the result of a service-connected injury or disease.

Military Survivor Benefit Plan (SBP), Reserve Component Survivor Benefit Plan (RCSBP), Retired Serviceman’s Family Protection Plan (RSFPP) Indiana State Tax Benefits: Military survivor annuities are exempt from Indiana Income tax.

Indiana Disabled Veterans Property Tax Deductions: Indiana offers three property tax deductions for resident disabled Veterans.

Deduction for Totally Disabled Veteran, Partially Disabled Veteran over age 62 and Spouses: A $14,000 deduction for Veterans and surviving spouses who meet the following requirements: