Kentucky Income Tax Exclusion for VA Dependency and Indemni…

Kentucky Income Tax Exclusion for VA Dependency and Indemnity Compensation

Kentucky Department of Revenue

Full exclusion from taxable income

Dependency and Indemnity Compensation, the monthly VA payment to eligible survivors of a service member who died in the line of duty or a veteran whose death resulted from a service-connected injury or disease, is tax free and is not taxed by Kentucky.

Check eligibility

How to apply

There is nothing to apply for. Leave your DIC payments out of the income you report on your Kentucky return.

What you'll need

Your VA award letter showing the DIC payments.

Eligibility

You are filing a Kentucky income tax return
You receive VA Dependency and Indemnity Compensation

Source

Official source

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