Skip to main content
January 9, 2020
Question

Army medical retirement pension

  • January 9, 2020
  • 1 reply
  • 0 views

Spouse retired from Army in 2013. It was not for time in service. It is a medical retirement for disabilities incurred during his service. The IRS sent a bill for 2017 saying he owes over $6,000 for not paying taxes on his Army Pension in 2017 but he doesn’t get taxed for this income and the amount they claim owed is more than 50% of his yearly pension. I’ve called and called and keep getting the run around since last April. How do we show them it’s an error when they already have his 1099 and aren’t billing for any other year than 2017. It makes no sense. 

    1 reply

    January 10, 2020

    You may want to read the section titled Military and Government Disability Pensions - Conditions for Exclusion in this IRS reference:  https://www.irs.gov/publications/p525#en_US_2018_publink1000229318

     

     

    **Answers are correct to the best of my ability but do not constitute tax or legal advice.