Answer: Length of service.
My VA rating came after my retirement date but the same year.
It’s important to note, that I submitted paperwork to DFAS a few months ago stating that my retirement is to be tax exempt following 525 and my VA rating.
They approved the change, I’m now receiving my pension without taxes being withheld.
But, when I called DFAS, they were unsure if the IRS would see it as exempt. Hence the line of questioning.
and because of the uncertainty, it’s unclear to me how to amend prior returns and recalculate AGI. And going forward how to do the same.
