A few questions,
Based on the 2021 IRS publication 525, section “sickness and injury benefits” subsection “Military and Government Disability Pensions”, following example 19 on the bottom of page 19.
According to the VA, I’m 100% permanent and totally disabled.
Therefore:
- is my military retirement pension no longer reported as income?
- And for prior returns, amend the return by removing my pension from the AGI altogether?
- And for prior returns, following the statue of limitations, can I amend my returns for taxes paid?
“Example 19. You retired in 2015 and re- ceive a pension based on your years of service. On August 3, 2021, you receive a determination of service-connected disability retroactive to 2015. Generally, you could claim a refund for the taxes paid on your pension for 2018, 2019, and 2020. However, under the special limitation period, you can also file a claim for 2017 as long as you file the claim by August 3, 2022”
https://www.irs.gov/pub/irs-pdf/p525.pdf
