How do I document my military retirement and disability which are both tax free ?

[asparky]

I was medically retired in 2001. Due to my entrance date my retirement and disability are box tax free

[Carl]

VA Disability income is not reported on any tax return,ever. It's not taxable or reportable at all.

For your retirement income, that's reported to you on a 1099-R. If you haven't received it in the mail yet, then you can log into your DFAS account at mypay.dfas.com go to tax documents and download it there.

If you had a disability claim that was approved in 2017 *AND* it was retroactive back to your retirement date, please let me know. I have information that will enable you to get some money back from previous year's tax returns for that. ALso, if you retired in 2017 and your disability is retroactive back to your retirement date, if any of that qualified disability pay is included on your 1099-R, the same applies. Let me know.

[asparky]

I do not get a 1099-R because my retirement is also tax free. I called Cleveland the first three years after I retired to be sure it was right. I enlisted in 1974 and retired in 2001. I was medically retired by the navy at 10% which the VA latter increased. From what Cleveland told me until October 1975 if you were medically retired your whole retirement is tax free. The only reason I would put it on my tax return is to increase the deduction for sales tax

[Carl]

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.

[asparky]

From what I have learned because I enlisted before OCT of 75 and I was medically retired, my retirement is tax free. Looked at my monthly statement on My Pay and it has a comment saying my retirement is tax free. The Navy gave me 10% on the way out and then the VA gave me 80. My biggest problem is where to put the amount on my tax form. Not sure I would save enough to make it worth taking my taxes to a professional.

[Carl]

Thanks. Didn't realize things were different for those who joined prior to Oct 75. I joined AF in Sept of 78.  But basically, if you don't have a 1099-R then nothing has to be reported at all. The only reason you would enter it anywhere in the program would be for the sales tax deduction. Even then, it's not reported to the IRS because it's not required to be reported. Basically, you're report nothing concerning that retirement income to the IRS. No reason to that I can see.