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posted Apr 2, 2022 12:50:54 PM

Why is my military retirement pay being penalized as an early withdrawal from a pension plan?

How to I list my Military retirement 1099 to avoid turbo tax from subjecting it t early withdrawal penalities?

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1 Replies
Expert Alumni
Apr 2, 2022 1:07:23 PM

Military retired pay is paid for many different reasons under many different laws. There are differences in the types of pay a military retiree might receive and the tax laws that apply to them. Whether a portion or all of an individual’s military retired pay is subject to federal income taxes depends on his/her individual circumstances.  See Is It Taxable - Defense Finance and Accounting Service