What are Massachusetts Military and Veteran State Tax Benefits?
Massachusetts Income tax Exclusion for Combat Pay: Pay received for active service in a combat zone by members of the U.S. Armed Forces is excluded from Massachusetts gross income.
Massachusetts Military Retired Pay Income Tax Benefit: Military retired pay is not taxed in Massachusetts.
Military Disability Retirement Pay Excluded from Massachusetts Gross Income: Military Disability Retirement Pay received as a pension, annuity or similar allowance for personal injury or sickness resulting from active service in the U.S. Armed Forces should not be included in taxable income. Some of the payments which are considered disability benefits include:
- Disability compensation and pension payments for disabilities paid to Veterans or their Families
- Grants for homes designed for wheelchair living
- Grants for motor vehicles for Veterans who lost their sight or the use of limbs, or
- Benefits under a dependent-care assistance program.
If you are a retired Service member and receive disability benefits from the VA, see IRS Publication 525 for more information.
Massachusetts State Taxes on U.S. Department of Veterans Affairs Disability Dependency and Indemnity Compensation (DIC): DIC is a tax-free monetary benefit paid to eligible survivors of military Service members who died in the line of duty or eligible survivors of Veterans whose death resulted from a service-connected injury or disease.
Military Survivor Benefit Plan (SBP)/ Reserve Component Survivor Benefit Plan (RCSBP)/ Retired Serviceman’s Family Protection Plan (RSFPP) Massachusetts State Tax Benefits: Survivor Benefit Program pensions which are paid to a Surviving Spouse are not taxed.
Massachusetts Property Tax Exemption for Veterans, Spouses, Surviving Spouses and Gold Star Parents: Veterans their Spouse, Surviving Spouse or Gold Star Parents may be eligible for a range of property tax exemptions.
Clause 22 – $400.00 tax exemption for the following:
- 10% (or more) service-connected disabled Veteran
- Purple Heart recipient
- Gold Star mothers and fathers
- Spouse or unremarried Surviving Spouses of an eligible Veteran
Clause 22A – $750 if the Veteran has:
- Service-connected loss of use of one foot or one hand or one eye
- Medal of Honor recipient
- Distinguished Service Cross recipient
- Navy Cross or Air Force Cross recipient
- Prisoner of War
- Spouse or Surviving Spouse of an eligible Veteran
Clause 22B – $1,250 if the Veteran has:
- Service-connected loss of use of both feet, both hands or both eyes
- Spouse or Surviving Spouse of an eligible Veteran
Clause 22C – $1,500 if the Veteran has:
- Permanent and total disability rating from the VA and received specially adapted housing assistance
- Spouse or Surviving Spouse of an eligible Veteran
Clause 2D – Total exemption for the unremarried Surviving Spouses of a Service member whose:
- Death occurred in a combat zone or as the result of an illness or injury they received in combat zone
- Declared missing in action and presumed dead
Clause 22E – $1,000 if the Veteran has:
- 100% disability rating from the VA
- Spouse or Surviving Spouse of an eligible Veteran
Clause 22F – Total exemption for the following:
- Veteran that is paraplegic or has a 100% disability for service-connected blindness
- Spouse or Surviving Spouse of an eligible Veteran.
Should you be in the midst of a military divorce or contemplating divorce, contact the Law Offices of Renee Lazar at 978-844-4095 to schedule a FREE one hour no obligation consultation.
https://myarmybenefits.us.army.mil/Benefit-Library/State/Territory-Benefits/Massachusetts