If you're referring to Dependency and Indemnity Compensation, the monthly benefit paid to eligible survivors of military service members who died in the line of duty, or eligible survivors of Veterans whose death resulted from a service-related injury or disease, do not report this anywhere on your return. Even though these payments are non-taxable, entering them anywhere on your return could affect the taxability of other income, such as Social Security.
Do save the 1099 form with your 2020 tax records.
See “Veterans' benefits” in IRS Publication 525, Taxable and Nontaxable Income.
