Pennsylvania Income Tax Exclusion for VA Military Disabilit…

Pennsylvania Income Tax Exclusion for VA Military Disability Retirement Pay

Pennsylvania Department of Revenue

Full exclusion from Pennsylvania taxable income

Military disability retirement pay you receive as a pension, annuity or similar allowance for a personal injury or sickness resulting from active service should not be counted in your taxable income. The same treatment covers VA disability compensation and pension payments to veterans or their families, grants for a home designed for wheelchair living, grants for a motor vehicle if you lost your sight or the use of a limb, and benefits under a dependent-care assistance program.

Check eligibility

How to apply

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

What you'll need

Your VA award letter showing the payments and what they are for.

Eligibility

You are a Pennsylvania resident filing a Pennsylvania personal income tax return
You receive military disability retirement pay, or another VA disability benefit, for an injury or sickness resulting from active service in the U.S. Armed Forces

Source

Official source

TurboVets is a privately owned company and is not affiliated with, endorsed by, or sponsored by the United States Department of Defense (Department of War) or any branch of the U.S. Armed Forces. References to military service, veterans, the Department of Defense (Department of War), or related organizations are made for informational purposes only. Any military seals, insignia, logos, or emblems appearing on this website are used in a descriptive or illustrative manner and do not constitute official endorsement, authorization, or approval. All such seals, insignia, logos, and emblems remain the property of their respective owners