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jtski13z
New Member

As a 100% P &T disabled veteran, I was advised that the military retirement isn’t taxable. Is this true and, if so, how do I report it?

 
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Accepted Solutions
DanaB
Expert Alumni

As a 100% P &T disabled veteran, I was advised that the military retirement isn’t taxable. Is this true and, if so, how do I report it?

If you receive Concurrent Retirement and Disability Pay (CRDP), also known as Concurrent Receipt, which allows military retirees to receive both a full military retirement pension and full VA Disability compensation benefits, then only your VA Disability is not taxable.  But your military retirement is taxable and has to be included in your tax return. You should have gotten a 1099-R for military retirement. If you have access to mypay you should be able to download the 1099-R there as well.

Please follow these instructions to enter your Form 1099-R :

  1. Login to your TurboTax Account
  2. Click "Take Me To My Return"
  3. Click "Federal" from the left side of your screen
  4. Scroll down to “Retirement Plans and Social Security” and click “Show more
  5. Scroll down to  “IRA, 401(k), Pension Plan Withdrawals (1099-R)” and click “Start
  6. From here TurboTax will walk you through entering your information.

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5 Replies
DanaB
Expert Alumni

As a 100% P &T disabled veteran, I was advised that the military retirement isn’t taxable. Is this true and, if so, how do I report it?

If you receive Concurrent Retirement and Disability Pay (CRDP), also known as Concurrent Receipt, which allows military retirees to receive both a full military retirement pension and full VA Disability compensation benefits, then only your VA Disability is not taxable.  But your military retirement is taxable and has to be included in your tax return. You should have gotten a 1099-R for military retirement. If you have access to mypay you should be able to download the 1099-R there as well.

Please follow these instructions to enter your Form 1099-R :

  1. Login to your TurboTax Account
  2. Click "Take Me To My Return"
  3. Click "Federal" from the left side of your screen
  4. Scroll down to “Retirement Plans and Social Security” and click “Show more
  5. Scroll down to  “IRA, 401(k), Pension Plan Withdrawals (1099-R)” and click “Start
  6. From here TurboTax will walk you through entering your information.

As a 100% P &T disabled veteran, I was advised that the military retirement isn’t taxable. Is this true and, if so, how do I report it?

If your State is the state that doesn't tax military retirement pay CRDP then why am I receiving a 1099R for 2021 when it is posted on list for tax year 2022? I am confused because I am a disable Vet with 100% P&T IU and they still tax my pay. And the state want accept my award letter stating that I am property tax exempt. What should I do?

RobertB4444
Employee Tax Expert

As a 100% P &T disabled veteran, I was advised that the military retirement isn’t taxable. Is this true and, if so, how do I report it?

If you are receiving a 1099-R and there is an amount in box 2a then a portion of your retirement IS taxable.  You'll need to enter the 1099-R into your federal tax return.

 

If you live in a state where your military retirement benefits are not taxable then you should make sure that they are not included on your state tax return.  If the state sends you a letter asking about the retirement benefits and where they are on your state return then you send them a copy of your award letter.  

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As a 100% P &T disabled veteran, I was advised that the military retirement isn’t taxable. Is this true and, if so, how do I report it?

Okay. On the website for each State effective year 2022. Each States  gives their Veterans Benefits so according to State of KS: they will not-- year 2022 be taxing military retirement pay. So how do we adjust that if the Military Retirement is none taxable?

DMarkM1
Employee Tax Expert

As a 100% P &T disabled veteran, I was advised that the military retirement isn’t taxable. Is this true and, if so, how do I report it?

Yes, you are correct KS will exclude your military retirement pay from KS taxes.  Your pensions will be taxable on your federal form 1040; however, KS doesn't tax federal or KS state public pensions on your KS state tax return. 

 

When you enter your form 1099-R in the federal interview (Retirement withdrawals...) for your pension distribution, you will arrive at a page asking where the distribution is from.  You select the correct category (federal or KS public) or other. 

 

Once you make that selection in the federal interview, that will trigger the correct handling on your KS state return.

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