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Level 1

I received a 1099-R for my military retirement pay but I am 90% disable veteran. Do I owe taxes on my entire retirement pay?

I was told at retirement that I only pay taxes on my retirement pay after I subtract my VA Disability.  So If I am 100% disabled then I don't pay taxes on 100% of my retirement check.  Is this correct and if so how do I file it on my taxes with the 1099-R?

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Level 1

I received a 1099-R for my military retirement pay but I am 90% disable veteran. Do I owe taxes on my entire retirement pay?

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 (shown on the 1099-R) is taxable and has to be included in your tax return. 

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.