Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Military Income Workout

Medical Separation Pay

Case Study 2: Disability Pay (continued)

The scenario continues. In August 2020, Robert received his VA determination letter, which showed he was entitled to a disability pension of 80% from the date of his discharge.

True or False? Starting in 2021, the Form 1099-R that Robert receives will show the correct amount of taxable pension income.

Sergeant Martin.