Franklin County Veterans Affairs wants to make sure veterans are aware of Senate File 303, which was signed by Governor Branstad last spring. This provides for the exclusion of military retirement benefits from Iowa individual income tax retroactive to the tax year beginning on or after January 1, 2014.

The exclusion also applies to military survivor benefits received under 10 U.S.C. 1447. The exemption is available to both residents and nonresidents of Iowa. Because the change is retroactive to January 1, 2014, individuals receiving military retirement benefits may immediately change or eliminate the amount of Iowa tax being withheld or their military pension. They may also leave their withholdings as they are and receive a refund when their taxes are filed.

There are several methods that may be used to accomplish this.

View this article and other VA news in Iowa by checking out the Iowa Department of Veterans Affairs Newsletter (.pdf). If you have any questions, please contact Tom Berry, VA Executive Director, at or 641-456-5670.