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Utah Income Tax Exclusion for VA Military Disability Retirement Pay

Utah State Tax Commission
Full exclusion from taxable income

Disability retirement pay you receive as a pension, annuity or similar allowance for an injury or sickness that resulted from active service is not included in your taxable income. The same treatment covers VA disability compensation and pension payments to veterans and 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. These payments stay out of your federal adjusted gross income, which is where your Utah return starts, so leave them out of the income you report.

What you'll need

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

Eligibility

  • You file a Utah individual income tax return
  • You receive military disability retirement pay, or another VA disability benefit, for an injury or sickness resulting from active service

Source

Official source