Military Spouse Annuitant Gets SBP With DIC and SSIA

“Dear Jim,

Military spouse annuitant account.

Receives SBP with a DIC offset also SSIA. Where do I report this income?

Mike”

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The Answer

Hi Mike:

I do not have much experience in annuity payments to military spouses – but here is what I could find and some preliminary sites to read:

DIC is tax free

SBP is taxable as pension income-will be shown on CSF1099-R

SSIA does not appear to be taxable

Thanks

Jim

Jim Buttonow is one of the resident debt experts here at GetOutOfDebt.org that helps people for free. Jim is a licensed CPA who spent 19 years with the IRS coordinating large compliance teams of IRS agents and specialized personnel. In the last 5 years, Jim has invented consumer and practitioner software and treatises on how to address many different tax issues. He has also represented many people before the IRS examination, collection, filing, and appeals functions. He currently assists taxpayers on an active pro bono tax practice aimed at serving people in need. He can be reached at IRSMind.com.

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