The VA completed my disability claim after I received my 1099-R. The letter from the VA states "Because VA compensation is not taxable, you may be entitled to a tax exemption during the period the VA withheld your compensation; the amount of the exemption would be the amount of compensation the VA withheld based on your receipt of military retired pay." Can I adjust my military retired pay 1099-R to account the amount withheld? If so, how do I do that and what evidence do I need to show to the IRS that the adjustment is appropriate?
