Military retirees in Colorado could enjoy a lot more financial security in the future if a tax relief bill heard at the statehouse today keeps moving forward.
As the Prowers Journal reports, Senate Bill 75, authored by Senator Larry Crowder, R-Alamosa, eliminates current caps on how much military retirees are able to deduct from federal taxable income.
Crowder said the bill is a small token of appreciation the state can give retirees, especially those living on fixed incomes, which he said, will also boost Colorado’s economy and attract more military retirees to the state.
Currently, veterans between 55 and 64 years of age can deduct up to $20,000 of their military retirement benefits from federal taxable income and veterans over 65 may deduct up to $24,000. The bill, if passed, would eliminate those caps and allow veterans to claim a state income tax deduction for all military retirement benefits.
The bill moves next to the Senate Appropriations Committee.