Carl
Level 15

Deductions & credits

Assuming your retirement pay is reported on 1099-R, what makes it, or any part of it non-taxable? This is not a rhetorical question. There are valid scenarios where at least a part of it very well could be non-taxable. For example, do you have a letter from the VA awarding you a percentage of your retirement as non-taxable disability pay, and does that letter indicate a retroactive date?