Pensions Military Retirement - Living in the Philippines

Again, to be very clear on this for US citizens.

IF you are a retired military Veteran who is in receipt of military disability retirement pay, THEN some of your pay MAY be reportable as income.

Most of my military retirement pay falls under the tax exempt category - some does not and is reportable.

DFAS is required to produce to you a mailed copy of the 1099-R, and this 1099-R shows how much was paid to the retiree as reportable taxable income for IRS filing purposes. You can opt out and go paperless on this 1099-R, too. The 1099-R is mailed to the address DFAS has on file and it's up to you to report a change of address with them.

The MyPay website also has this and you can print one up (1099-R) for yourself when you access your account with them.

But the Post 9/11 GI Bill housing stipend pay is non-reportable, VA aid and attendance is non-reportable, your disability portion of your PDRL pay is non-reportable, and your VA compensation is non-reportable.

nwlivewire

 

Yes if you are retired military, things are different and you need to make sure your taxes are in order. I am not retired military and all my disability is 100% tax free.

 

Anything under 50% disability rating means that you get a "VA Waiver" on the retirement pay. In other words if you have a disability rating of 25% then you get 25%of your retirement pay tax free. Nothing to write home about. If your were to get 100% of your retirement, and an additional 25% in disability that would be different.