Tax help for military filers

So here is what I did.  I still e-filed.  Don't fill out an ammended tax return because you're not ammending anything.  The VA instructions are stupid and don't guide you down the right path if you've filing for the first time since receiving severance.

 

DFAS should have issued you a 1099-R around January of this year.  If they did not, you will need to call DFAS Retired Pay and request this urgently. (eight hundred, three two one, one zero eight zero > option 5 > option 3 and don't let them transfer you to your branches DFAS department because it was DFAS Retired Pay that gave you the money, so they have to give you the 1099-R.  DFAS is great about not knowing how to do their job and not wanting to do their job, so they will immediately try to transfer you... but the department of DFAS for your military branch won't be able to help you, it must be DFAS Retired Pay.)  They will tell you they've requested it on your behalf, but you will want to write up a letter and fax the request as well, otherwise they will "forget" or some crap (it's a scam, they want you to give up).

 

It took me a couple of months to get one from them, but they finally provided it. 

 

Once you have that 1099-R you file it as such on TurboTax.  Once you've added the 1099-R, you will need to go into other income and claim a negative income of the exact same amount of the severance pay, so that it removes that from what you owe.  Give it a title of something like "MILITARY DISABILITY SEVERANCE PAY", which is what I gave mine.

 

This will calculate how much taxes to return to you and add it to your return.  You can still e-file, you don't need to send in a dd214 or any other documentation.  If they want to see it, they will audit you and ask for it.

 

KEEP IN MIND - I'm not a tax expert.  I used the TurboTax Live CPA assistant and spoke to a gentleman that walked me through this and that is how he told me to file it.