DoD Military Retirement Pay and VA's Concurrent Retirement and Disability Pay (CRDP), which is taxable?
In 2012, I retired from the military and receive retired pay based on years of service. I also have a 90% disability rating from the VA and receive Concurrent Retirement and Disability Pay (CRDP). The info on the irs, va and dfas websites are very confusing. Is the CRDP taxable and will I receive a 1099 for the amounts I have received? The websites discuss retroactive pay and waiver of pay from my DOD retired pay. I've also read the IRS pub 525, not being a tax attorney ... I am totally confused. Help! I have the 1099-R from the DoD, will I receive one from the VA and do I report CRDP in my income. The CRDP has had no tax withholding. Thanks!