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Full Federal Income Tax Exemption for All Military Retirement Pay.

This law introduces a major change for veterans by completely excluding all military retirement pay and related benefits from Federal income tax. This means individuals receiving these benefits will keep a larger portion of their money, directly increasing their disposable income. These changes will take effect in the tax year following the law's enactment.
Key points
All military retirement and retainer pay will be exempt from Federal income tax.
The change also covers certain benefits related to disability or combat-related injuries, if not previously excluded.
Veterans and former service members will see an increase in their net income as their benefits become tax-free.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_S_1108
Sponsor: Sen. Ricketts, Pete [R-NE]
Process start date: 2025-03-25
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Summarized by: gemini-flash-latest
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Tax Cuts for Veterans Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_S_1108.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2025-03-25.

What are the main provisions?

Key points include:

  • All military retirement and retainer pay will be exempt from Federal income tax.
  • The change also covers certain benefits related to disability or combat-related injuries, if not previously excluded.
  • Veterans and former service members will see an increase in their net income as their benefits become tax-free.
What is the specific legal status?

The current status is Introduced.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Ricketts, Pete [R-NE].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-31.

CATEGORIES

Taxes Benefits