Retired Military

[djpete0609]

How do I know if my Navy retired pay is qualified or unqualified.

[MargaretL · Accepted solution]

Military retirement (no matter what branch) is a Non-qualified plan.

[NavyDoc]

A good portion of my retired pay is retired military.  I want that to be known.

[ReneeM7122]

Most military pensions are federal taxable income. However, if you receive disability payments instead of or in addition to your pension, those payments are tax-free. You don't even need to report them on your tax return.

Veterans with a particular disability and/or are housebound may also qualify for Aid and Attendance (A&A) or Housebound benefits.

• These benefits can help offset the cost of hiring help or compensate a spouse who acts as a caretaker.
• A&A and Housebound benefits are exempt from both federal and state income taxes.

Other VA benefits that aren't counted as taxable income include:

• Grants for constructing or modifying a home to make it wheelchair accessible.
• Grants for motor vehicles for veterans who lost their sight or the use of their limbs.
• Benefits under a dependent-care assistance program.

Here is a TurboTax link for military veterans.

Thank you for your service.

@NavyDoc