The sales tax thing would be the only reason, and even then it's not reported to the IRS. If you're not issued a 1099-R, then you have nothing to report. But honestly I've never heard of retired military getting retirement tax free, except in situations where they are 100% disabled and get the entire amount of their retirement from the VA. I myself retired after 20 years back in '98 with 10% disability. So the other 90% is paid to me by DFAS, it's taxable and I get a 1099-R. Have you checked your online DFAS account to confirm there is no 1099-R? I only ask because you know how it works when dealing with the folks at MPO - you can ask five people the same question, get six different answers and none of them are necessarily wrong.
