Carl
Level 15

Tax help for military filers

Here's the clear cut bottom line.

If you receive a 1099-R from DFAS then the amount reported in box 2a is taxable income. This is assuming the standard distribution code in box 7 of that 1099-R is a 7. Now if you file a state tax return your state may treat it differently and you will deal with that separately on the state return only when you get to that point in the program.