OK, first the different disabilities that are out there. You have military disability. Military disability can be (1) taxed and (2) untaxed. If your disability if found combat/combat related then it is untaxed. If it is just straight up service related it will be taxed. This is all independent of your VA disability. This is true if you retired under years of service (20+). Most would usually go through a medical board but not all and that is what it sounds like in Danny's situation. You did your "medical board" after the fact. You should already be receiving concurrent receipt. So you should be able to fill your 1040-X if you were awarded tax exemption for all or a portion of your pension. You will have to do the math manually. DFAS techs are not going to help you, and you may not want them to help you. Some have problems with some basic math.
I was 90% med board combat related retired but my time in service was 85%. Last year they gave me a 1099 for the 10% difference that DFAS retro paid because they initially capped me at 75%, but this year no taxes taken out so i'm not sure what's going on.
