Post by Logan on Feb 12, 2017 15:29:37 GMT -6
Bill would provide tax exemptions for military retirement pay
A bill introduced by Sen. Tom Brewer of Gordon aims to attract military retirees to Nebraska and provide incentive to stay for those service members who retire here.
LB 121, which was heard by the Nebraska Revenue Committee Friday, exempts military retirement benefits from state income taxes.
Brewer’s bill would exempt military retirement pay at a rate of $10,000 a year for five years, at a maximum of $50,000. He said that enlisted retiree’s benefits, along with most junior officers’, would go untaxed.
Since retirement pay is calculated at roughly half of a service member’s yearly base pay before they retired, it falls below that $50,000 threshold. Retired senior officers above the rank of major would pay a percentage of the income tax based on their grade and time in service.
Read more: www.starherald.com/news/local_news/bill-would-provide-tax-exemptions-for-military-retirement-pay/article_4c9dba08-cba7-534d-9f3f-1fd03986e656.html
A bill introduced by Sen. Tom Brewer of Gordon aims to attract military retirees to Nebraska and provide incentive to stay for those service members who retire here.
LB 121, which was heard by the Nebraska Revenue Committee Friday, exempts military retirement benefits from state income taxes.
Brewer’s bill would exempt military retirement pay at a rate of $10,000 a year for five years, at a maximum of $50,000. He said that enlisted retiree’s benefits, along with most junior officers’, would go untaxed.
Since retirement pay is calculated at roughly half of a service member’s yearly base pay before they retired, it falls below that $50,000 threshold. Retired senior officers above the rank of major would pay a percentage of the income tax based on their grade and time in service.
Read more: www.starherald.com/news/local_news/bill-would-provide-tax-exemptions-for-military-retirement-pay/article_4c9dba08-cba7-534d-9f3f-1fd03986e656.html