Military Retirement (code AJ)

UC §59-10-1043

You may qualify for this credit if you or your spouse (if filing jointly) received taxable military retirement pay. Military retirement pay means retirement pay related to service in the armed forces, including military retirement pay received by a survivor of a deceased service member. It does not include Social Security income, 401(k) or IRA distributions, or other sources of income. You may only claim this credit for military retirement income included in adjusted gross income reported on this return.

Complete the Military Retirement Credit Worksheet, below, to calculate this credit.

You may not claim this credit if you or your spouse (if filing jointly) claim the Retirement Credit (code 18).

TIP: Do not take this credit if you receive survivor benefits for a service member who died while on active duty or while in training; instead, take the Military Survivor Benefits Credit (code AA).

Military Retirement Credit Worksheet
Complete one worksheet for each person taking this credit.
1. Enter the amount of taxable military retirement pay on DFAS 1099-R 1.
2. Military Retirement Credit. Multiply line 1 by 0.0495 2.

If claiming this credit, add the amount on line 2 of all worksheets and enter the total amount on TC-40A, Part 3, using code AJ. 

Note: You may not carry forward or back any credit that is more than your tax liability.