I was wondering if my husband is considered to be a dependent. He is 100% disabled from the military, so he does collect retirement, but does not have a job.

A married person can never be claimed as a dependent on any return, ever. You still file married filing joint. There is no requirement for both of you to have income. Your husband's VA disability pay is not taxable or reportable on any return, ever.

Thank you for the reply Carl! I was confused with the wording the VA/IRS website was offering. I appreciate the help!

Now you know why you don't get any tax reporting documents from the VA. 🙂
But in the program where it figures your sales tax deduction, you'll be asked if you want to include any non-taxed/non-reported income for that. Say yes, and enter the amount of the disability pay. That is used *only* to figure a higher sales tax deduction for you. The VA pay is not reported to the IRS, because it doesn't need to be.