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June 3, 2019
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Should my military retirement funds be non-taxable since I’m 100% Service Connected Disabled through the Dept. of Veterans Affairs??

  • June 3, 2019
  • 3 replies
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Best answer by DanaB27

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.

3 replies

June 3, 2019
Are you asking about VA Compensation or Retirement pension?
June 3, 2019
Regular military retirement
DanaB27Answer
June 3, 2019

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.

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