Should my military retirement funds be non-taxable since I’m 100% Service Connected Disabled through the Dept. of Veterans Affairs??

[JulieR]

Are you asking about VA Compensation or Retirement pension?

[sants-briones]

Regular military retirement

[DanaB · Accepted solution]

The regular military retirement shown on a 1099-R (from DFAS) will be taxable on the federal level and have to be included on your tax return. Depending on your state the military retirement may or may not be taxable for the state income tax. 

The disability payments from the VA are non-taxable.