HELP! TAX QUESTION

[jedmiston7]

Please help me! I cannot find this information online anywhere. In October of 2018, my husband was rated with IU as permanent and total and this was back dated to March 2017. Prior to this rating his military retirement income was higher than the VA income and so he was receiving about $800 taxable income. However, when he got IU, being paid at the 100% rate, raised his VA pay over his retirement. This was backdated so he has 0 taxable income for 2018. My question is, how do I report this on our current tax return for 2018? Is his taxable income $0 and do I have to send proof of that? To make it even more interesting, the army raised his percent and moved him from tdrl to pdrl and so now we are back to having taxable income of $500. This was just processed in January. Please help! I do not want to spend hundreds of dollars on a tax professional.

 

[gsfowler]

Ask DFAS for a corrected 1099R if the current does not reflect the tax withheld accurately. You may have to file an amended 2017 return if you want to adjust that tax year.