They seem to what more money for that reason.
2007-04-30 19:10:27 · 5 answers · asked by Edward S 1 in Business & Finance ➔ Taxes ➔ United States
Yes, your military pension is taxable.
If you left the military with a disability award, that portion of your pension becomes NON-taxable. For example, if you're like me and have a 30% rating, your amount of pay doesn't change, but 30% of it becomes non-taxable. (Your 1099-R will give both amounts.)
Note for the answer just above me:
Even though hazard-zone and combat-zone pay is not taxable, your income becomes taxable again as soon as you leave the zone. So unless you've retired in Iraq, your retirement pay is fully taxable regardless of how long you spent there on active duty.
2007-04-30 21:40:19 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Military or other retirement pay shown on a 1099-R is taxable.
2007-04-30 19:54:39 · answer #2 · answered by Judy 7 · 0⤊ 0⤋
The general rule is that military retirement pay based on age or length of service is taxable as ordinary income. Military retirement pay based on disability or service in a combat zone would potentially eligible for exclusion.
2007-04-30 20:03:05 · answer #3 · answered by mattapan26 7 · 0⤊ 0⤋
If you are issued a 1099R , then you are liable for taxes. However, when you retire, and you are over 65, you belong to a much lower tax bracket, so if the amounts in your 1099 are not too much, you may not be liable for taxes. Consult with your accountant.
2007-04-30 19:15:34 · answer #4 · answered by cmira4 4 · 0⤊ 0⤋
Yes, it's fully taxable as ordinary income
2007-05-01 00:01:12 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋