Military Scenario 3: Tammy Jordan: Interview Notes:

Tammy Jordan is a retired member of the U.S. Marine Corps.

She received Form 1099-R for retirement payments from the Defense Finance and Accounting Service.

Form 1099-R indicates $32,000 in Box 1 and Box 2a.

Tammy is considered 10% disabled and received a letter of determination from the Department of Veterans Affairs (VA).

She received a payment in the amount of $1,495 from the VA for disability.

Military Scenario 3: Test Questions:

1. Which of the following documents are issued by the VA for disability payments?

a. Form W-2, Wage and Tax Statement

b. No tax form is required to be issued; however, Tammy may receive a statement.

c. Form W-2 or 1099-R, depending on type of disability.

d. Form 1099-R, Distributions From Pensions, Annuities, Retirement or Profit-Sharing Plans, Insurance Contracts, etc.

2. The disability payment of $1,495 that Tammy received from the VA is taxable.

a. True

b. False