I'm a military retiree and have income from Defense Finance and Accounting Service as pension. It's 1099-MISC. How to enter this information?

[DMarkM1]

Likely the payment is not a pension distribution.  A pension is a distribution from some kind of retirement fund and will be reported on a form 1099-R.  In any case the payment would not appear to be for some kind of work you did for DFAS so to enter that income follow these steps.

1. "Wages and Income"
2. "Other Common Income"
3. "1099-Misc"
4. "Yes"
5. Enter form information
6. Enter some kind of description of what the payment was for 
7. Likely "None of these apply" but if you discover any options do select that one that applies
8. "No, it didn't involve main job work"
9. "I got it in 2022"
10. "It didn't involve an intent to earn money"

[htm_asano-yahoo-]

Thank you very much for your reply.

I just realized it's income as Red Hill water contamination incident reimbursement, not a pension.

It's just announced yesterday that we do not owe any tax for this income. Should I just ignore this 1099 form?

https://www.militarytimes.com/news/your-military/2023/04/06/hawaii-civilians-dont-owe-taxes-on-red-h...

[JulieS]

No, it is best to put it on your tax return and then enter a balancing amount to let the IRS know why it is not taxable. If you leave it off completely, the IRS may pick it up as unreported income and start an automated audit.

This is how to report this in TurboTax:

1. Open your return and select Federal, then Wages & Income.
2. Scroll down the list and find the section called, Less Common Income, expand the section. 
3. Scroll all the way down and select Miscellaneous Income, 1099-A, 1099-C.
4. Click Start to the right of Other reportable income at the very bottom.
5. Answer Yes and click Continue.
6. If you have not yet entered your 1099-MISC in your return, enter "Red Hill comp" as the description and amount from your 1099 on this page, click Continue.
7. Click +Add another income item, under the income summary.
8. Enter "Red Hill not taxable" as the description and the same amount as a negative number, click Continue.
9. Click Done. 

Your summary should look something like the screen below. This will include the form on your return, but it will not change your taxable income. 

[htm_asano-yahoo-]

Thank you so much!