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djpete0609
New Member

Retired Military

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

Accepted Solutions
MargaretL
Employee Tax Expert

Retired Military

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

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3 Replies
MargaretL
Employee Tax Expert

Retired Military

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

NavyDoc
New Member

Retired Military

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

ReneeM7122
Level 9

Retired Military

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

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