If you’re a veteran in South Carolina you may soon be exempt when it comes to paying your state income taxes.
A recently passed bill allows all military retirement income to be exempt in South Carolina when filing income taxes.
The House and the Senate both passed the bill and are hopeful it will bring retired veterans to the state.
There are 400,000 military vets living in South Carolina and 40,000 would benefit from the bill.
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At the moment, there are 35 states that do not tax military veterans retirement income.
The bill is called the Workforce Enhancement and Military Recognition Act and is awaiting the governor’s signature.
What other states have exemptions for veteran military retirement income?
Most veterans who qualify for military retirement are veterans who served for 20 years.
Military retirement pay isn’t earned income so they do not pay Social Security.
States have different laws.
The states that are exempt include
- New Jersey
- New York
- North Carolina
- North Dakota
- West Virginia
States with no income tax, resulting in military retirement being exempt include
- New Hampshire
- South Dakota
These states offer partial exemptions
- New Mexico
- Rhode Island
- South Carolina
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