Pennsylvania Income Tax Exclusion for VA Dependency and Ind…

Pennsylvania Income Tax Exclusion for VA Dependency and Indemnity Compensation

Pennsylvania Department of Revenue

Full exclusion from Pennsylvania taxable income

Dependency and Indemnity Compensation, the monthly VA payment to 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 Pennsylvania.

Check eligibility

How to apply

There is nothing to apply for. Leave your DIC payments off the income you report on your Pennsylvania PA-40 return.

What you'll need

Your VA award letter showing the DIC payments.

Eligibility

You are a Pennsylvania resident filing a Pennsylvania personal income tax return
You receive VA Dependency and Indemnity Compensation

Source

Official source

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