Please note (link below) that page 18 of IRS Tax pub 525 is being *incorrectly* interpreted by some VA rated Disabled Vets to exempt fed taxes on one’s military pension (a pension based on number of years of service). You have to read the pg18 wording carefully and note that it’s disability compensation that is excluded from fed taxes and that only in cases of disability retirement/disability pensions (not pensions based on number of years served ) do the provisions on page 18 apply. https://www.currentfederaltaxdevelopments.com/blog/2022/4/29/disabled-veteran-could-not-exclude-mili...
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Also, just because one can convince DFAS to reduce their W-4 Fed tax withholdings based on one’s interpretation of Page 18 of IRS pub 525, it doesn’t mean that Military Pension Fed taxes aren’t still due to the IRS at the end of the tax year. The IRS (not DFAS) is the governing authority on taxable/non taxable income and their determinations on page 18 exceptions are stated on the link above. One’s tax withholdings, if under represented at the end of the tax year , can incur penalties. I hope this helps.
