Revenue and Taxation Code section 17132.10
(a)
For taxable years beginning on or after January 1, 2025, and before January 1, 2030, gross income shall not include annuity payments received by a qualified taxpayer during the taxable year, not to exceed twenty thousand dollars ($20,000), pursuant to a United States Department of Defense Survivor Benefit Plan.(b)
For purposes of this section, the following definitions apply:(1)
“Qualified taxpayer” means the surviving spouse or other named beneficiary of a plan who satisfies either of the following:(A)
In the case of a surviving spouse or spouses filing a joint return, adjusted gross income, as required to be shown on the federal tax return for the same taxable year, does not exceed two hundred fifty thousand dollars ($250,000).(B)
In the case of any other individual, adjusted gross income, as required to be shown on the federal tax return for the same taxable year, does not exceed one hundred twenty-five thousand dollars ($125,000).(2)
“United States Department of Defense Survivor Benefit Plan” or “plan” means a survivor benefit plan established pursuant to Section 1447 to 1455, inclusive, of Title 10 of the United States Code.(c)
This section shall remain in effect only until December 1, 2030, and as of that date is repealed.
Source:
Section 17132.10, https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=17132.10. (updated Jun. 27, 2025; accessed Jul. 14, 2025).
