District of Columbia Income Tax on Military Retired Pay and Survivor Annuities

The District of Columbia has an income tax and gives military retirees nothing specific in it. What ended. D.C. Code 47-1803.02(a)(2)(N)(i) excluded up to $3,000 of "pension, military retired pay, or annuity income received from the District of Columbia or the federal government" for a person aged 62 or older, but ends with the words "this sub-subparagraph shall apply for taxable years beginning before January 1, 2015". Since tax year 2015 every dollar of military retired pay has been taxable to a District resident. The Army benefits library says so correctly. What survives, and is worth more than it looks. Sub-subparagraph (N)(ii) excludes "Survivor benefits received from the District of Columbia or the federal government by persons who are 62 years of age or older", with no dollar limit and no end date. The 2025 D-40 instructions carry it as line 12 of the subtractions, "DC and federal government survivor benefits", for an annuitant's survivor aged 62 or older on December 31, excluding Social Security survivor benefits. A Survivor Benefit Plan, Reserve Component Survivor Benefit Plan or Retired Serviceman's Family Protection Plan annuity is a federal survivor benefit. A widow or widower under 62 pays tax on it until the year they turn 62. What is never taxed. VA disability compensation, dependency and indemnity compensation, VA pension and combat-related special compensation are excluded from federal gross income, and the District starts from federal adjusted gross income, so they never reach the D-40. Military disability retired pay is taxable only to the extent it is taxable federally. What died. B25-0184, the Pension Exclusion Restoration and Expansion Act of 2023, would have excluded up to $10,000 of federal or District pension or military retired pay at 62 to 64 and $20,000 at 65 or older, subject to funding. It was referred to the Committee on Business and Economic Development in March 2023 and died when Council Period 25 ended on December 31, 2024. No bill to restore the exclusion is pending in Council Period 26. A guide that quotes a District military retirement exclusion is describing the pre-2015 law or a bill.