Since you are 100% VA rated you should be receiving your military retirement pay and VA disability pay (concurrent receipt). Your VA disability under Publication 525 is not taxable. However your military retirement is taxable under Publication 525.
Here is a link with discussion on the topic. If you are not receiving disability pay but only military retirement pay and you had a 100% disability rating then you would exclude your retirement pay from taxable income under Publication 525 rules.
The DoD and VA should have automatically changed your pay when the concurrent receipt laws passed in 2003. You should therefore be receiving a form 1099-R for your retirement pay which is entered into TurboTax and taxable. You VA disability pension is not reported on any tax forms and does not go on your tax return at all.
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