4.26 Ark. Code R. 51-307

Current through Register Vol. 49, No. 10, October, 2024

Rule 4.26-51-307 - Military Related Benefits

Only the first $6,000.00 of military retirement pay based on length of service is exempt from Arkansas income tax. However, pursuant to IRC Sec. 104(a)(4), the full amount of a military disability pension (with no $6,000.00 cap) is exempt from Arkansas income tax so long as the pension is for personal injuries or sickness resulting from active service in the armed forces. Likewise, military retirement pay, to the extent that it is based upon a military related disability, would be exempt above and beyond the first $6,000.00 received.