Anyone else ran into the issue of no 1099R this year? DFAS says it is available, but when I login to my account it tells me none has been produced. My medical retirement was based on a 80% DOD disability rating which 70% was PTSD. Will my compensation not be taxable? I just want to be prepared come tax season and not have a lingering tax bill that I am not prepared for. Thanks in advance!
No 1099R
- Thread starter david147
- Start date
There will be now 1099R if you don't have any taxable income. So if your VA compensation completely offsets your chapter 61 pension then no taxes are owed. That's because VA compensation is non taxable and if higher than your chapter 61 pension then it wipes out your fully taxable chapter 61 pension.
If your VA compensation does not completely offset your chapter 61 pension then its still possible to have no taxes owed. If you have 1 or more unfitting condition that is combat related then your chapter 61 pension is exempt from taxes. So even if your VA pay didn't wipe out your entire pension there would still be no 1099R if the underlying pension is also exempt from taxes.
There is a rare but 3rd situation but it involves choosing to not receive VA pay to get your chapter 61 pension instead.
Ok, that makes sense. I do have an offset, but it doesn't completely offset my entire DOD retirement. However, I have a combat related disability so as I now understand it, that would preclude me from any tax responsibility? Thanks for the information!