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military retirement vs va disability

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L

lawrencemac

Guest
What is the name of your state? Florida
Has anyone heard of adjusting your gross military retirement income by taking your annual active duty pay at time of retirement times your disability rating from the va- adding this to
what's taken out of your retirement pay this year times 12. then
subtracting this from your taxable retirement pay this year to get a net taxable retirement pay.
are they're any pubs or schedules showing this in the tax law? thank you.
 


abezon

Senior Member
Yes. You file a 1040X showing lower AGI, which lowers your taxes. Explain that the lower AGI is from the military recharacterizing $xxx of your income from retirement pay to non-taxable disability pay. Attach a copy of the determination letter. You can only go as far back as the 'start date' listed in the letter.
 

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