The Personal Income Tax Law, in modified conformity with federal income tax law, generally defines "gross income" as income from whatever source derived, except as specifically excluded, including an exclusion for combat-related special compensation.
This bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, would exclude from gross income retirement pay received by a qualified taxpayer, as defined, during the taxable year, not to exceed $20,000, from the federal government for service performed in the uniformed services, as defined. The bill, for taxable years beginning on or after January 1, 2025, and before January 1, 2030, would also exclude from gross income annuity payments received during the taxable year, not to exceed $20,000, by a qualified taxpayer, as defined, pursuant to a United States Department of Defense Survivor Benefit Plan. The bill would make related findings and declarations.
Existing law requires any bill authorizing a new tax expenditure to contain specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements, as provided.
This bill also would include the information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.