As @PattiF mentions above, you will need to follow these steps to enter your military disability severance pay:
- Click Federal from the left side of your screen.
- Click Wages & Income on the top
- Go to the Less Common Income and click Show more
- Scroll down to Miscellaneous Income and click Start
- Enter the full amount of your severance pay (do not reduce by the income taxes withheld) as a negative number (use "minus" - sign)
- Describe the entry as Military Severance Reclassified as Disability
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