Tax Question

[warrantarng]

I received 100% VA and DOD 90% ratings, I do not receive concurrent payment. my 1099-R from DFAS has a distribution code of 7, which equals to normal. Should I be paying federal taxes on my retirement received from DOD?

 

[Sgt zo]

You pay income tax on your retirement pay. VA compensation is not taxed.

 

[RonG]

I received 100% VA and DOD 90% ratings, I do not receive concurrent payment. my 1099-R from DFAS has a distribution code of 7, which equals to normal. Should I be paying federal taxes on my retirement received from DOD?

TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully
non-taxable if

your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:

• You were in the military or under a contractual obligation to join the military on September 24, 1975, or
• Your military disability rating is combat-related

Reference: https://www.dfas.mil/retiredmilitary/manage/taxes/isittaxable.html

Added: Additionally if all your retired pay is waived for VA compensation, you would not pay taxes on waived retired pay.
Ron