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.
- Form IA W-4P, Withholding Certificate for Pension or Annuity Payments (form at https://tax.iowa.gov/sites/files/idr/forms1/1444020.pdf), may be completed and sent to:Defense Finance and Accounting Service (DFAS): US Military Retirement PayP.O. Box 7130London, Kentucky 40742-7130
- DD Form 2866, Retiree Change of Address Request/State Tax Withholding Authorization (form at www.dtic.mil/whs/directives/infomgt/forms/eforms/dd2866.pdf), may be mailed to the same address as above.
- You can fax the forms to DFAS: 1-800-469-6559.
- You may call DFAS: 1-800-321-1080.
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 firstname.lastname@example.org or 641-456-5670.