• Taxpayers who are at least 55 years of age as of the last day of the tax year;
• Beneficiaries of any age (such as a widowed spouse or orphan child) who are receiving a pension or annuity because of the death of the person who earned the pension

Qualified taxpayers who are under age 65 as of the last day of the tax year can subtract the smaller of;

• $20,000 or
• the taxable pension/annuity income included in federal taxable income.

Taxpayers who are 65 years of age or older as of the last day of the tax year can subtract the smaller of;

• $24,000 or
• the taxable pension/annuity income included in federal taxable income.

Each spouse must qualify by age to claim the pension subtraction. Each spouse's subtraction is computed separately and no part of one spouse's $20,000 or $24,000 subtraction may be claimed by the other.

For Further Information:
FYI Income 25
FYI Income 18
FYI General 5