This year I began receiving my military retirement on 01/01/22. In 07/2022 DFAS began recoupment of a Special Separation Benefit (SSB) I received in 1993 when I separated from Active Duty and became a reservist (Per NAVADMIN 189/92).
Since I already paid taxes on this SSB in 1993 (as part of my gross income), can I deduct the current repayment of my SSB from the annual retirement amount I am receiving on my 1099-R so I am not paying taxes twice on the same amount?
If so, how do I document this in TurboTax?
Note: There is no deduction in box 2a (Taxable Amount) from Box 1 (Gross distribution), Box 4 (Tax withheld) is correct and Box 7 has code 7. No other boxes are checked/filled.
Thank you.
