New Income Tax Exemption Favors Military Retirees

When it comes time to file your 2019 taxes, North Dakota veterans will see savings to the tune of about $3,000,000.

Military members will no longer have to pay state income taxes on their retirement benefits from the Department of Defense.

Thanks to House Bill 1053, a new line on the North Dakota income tax return will be dedicated to the exclusion. Surviving military spouses receiving the benefits also qualify.

Even with the exemption, military retirees will still have to file and pay federal income taxes.

North Dakota will now be the 21st state to make veteran benefits, tax free.

State Tax Commissioner Ryan Rauschenberger explains, “That was one step that military advocates and retiree advocates pushed for this session, and basically, we wanted to be in that group of 20 other states that do this for the benefit of retired military.”

You don’t have to wait until next year. If the government is currently withholding taxes from your military retirement benefits, go to the Department of Defense website.

There’s a form to fill out, to get a refund for any money already withheld this year.

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