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Actually, if you are retired from the Army, your payments will be coming from the VA. This is not taxable to you. You will not receive a 1099-R from DFAS, so I wouldn't worry too much about it. Just make sure your disability award letter says 100%. Also, if you receive concurrent payments from the VA, those are not taxable either.

2006-09-01 17:19:15 · answer #1 · answered by Marian 2 · 0 0

Generally, you must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer.

If both you and your employer have paid the premiums for the plan, only the amount you receive for your disability that is due to your employer's payments is reported as income. If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive for your disability as income on your tax return. If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and the amount of the premium was not included as taxable income to you; the premiums are considered paid by your employer, and the disability benefits are fully taxable.

2006-09-01 14:58:44 · answer #2 · answered by STEVEN F 7 · 0 0

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