Another Dumb Question

[greg334]

Well it may be but I asked around and no one can give me a solid answer so here is the question for anyone to come up with a solid answer -

As a disabled vet, either with a general discharge or an honorable discharge, have to pay taxes on their disability pay?

 

[Crazynuff]

Hope this helps http://usmilitary.about.com/od/taxes/l/blvettax.htm

 

[greg334]

Crazynuff
thanks, that sort of answered the question.

I got a friend who is facing an audit this year over here 2006 filing for the 2005 year. I won't go into the details of it, she has my accountant and one of his friends helping out pro-bono but I was under the impression that all disability payments were 100% tax free on the federal level.

Kind of dumb if they tax any of the pay an armed forces member gets.