Income reported on a 1099-R is normally taxable on the federal return. The question is how much of this income is from DFAS (so, taxable retirement) and how much is from the VA (disability).
You should read this TurboTax thread (two pages) to see if this helps.
Note that if you determine that only part (or none) of the 1099-R amount is taxable, that you can enter a negative number in Other Income (as noted on the second page) to offset the 1099-R amount.
But I would not encourage you to leave the 1099-R off your return, since the IRS has a copy of it and might wonder why you did not report the income. Better to report it and back out what needs to be backed out, with an explanation.
@m10asun
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