Case Study 2: Disability Pay (continued)
The scenario continues. Beginning in 2017, Sergeant Robert Martin received a service pension in the amount of $1,000 per month.
In August 2017, Robert received his VA determination letter, which showed he was entitled to a disability pension of 80% from the date of his discharge. So, for the last four months of 2017, Robert received $800 tax-free disability income from the VA, and $200 taxable pension from the government.
For how many months will Robert adjust his Form 1099-R wages in 2017?