Question

How do I enter the nontaxable 1099 - Turbo tax is trying to tax Dependency and Indemnity Compensation-reported on a 1099 misc-never taxable (per VA ?

Forum|Forum|5 years ago
March 28, 2021
1 reply
0 views

No text available

TurboTax Deluxe Online

If you're referring to Dependency and Indemnity Compensation, the monthly benefit paid to eligible survivors of military service members who died in the line of duty, or eligible survivors of Veterans whose death resulted from a service-related injury or disease, do not report this anywhere on your return. Even though these payments are non-taxable, entering them anywhere on your return could affect the taxability of other income, such as Social Security.

Do save the 1099 form with your 2020 tax records.

See “Veterans' benefits” in IRS Publication 525, Taxable and Nontaxable Income.