Alternatively, you can enter the 1099-R exactly as issued by DFAS. To cancel out the non-taxable portion, go to the "Other Income" section and enter the VA award amount as a negative number.
Under Less Common Income, select Miscellaneous Income, 1099-A, 1099-C
- On the Let's Work on Any Miscellaneous Income page, select Start to the right of Other reportable income.
- On the Any Other Taxable Income? screen, select Yes.
- On the Other Taxable Income screen enter the description Retroactive VA Disability Award per IRS Rev. Rul. 78-161 and amount (as a negative). Select Continue.
- On the Other Miscellaneous Income Summary screen, select Done.
@eugene1459
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