During the Retirement Plan Income section of the Federal Q&A, you may come across a screen titled Special Distributions.

On this screen, you may see a Military Pension checkbox which can be checked if the distribution you received is from a military pension. Generally, this checkbox does not influence how the distribution is treated or used in calculations on the Federal return; however, the checkbox is used to gather information that some states use to exclude the military pension from that state's taxable income.

Military pensions are taxable income on the Federal level.

If you need help accessing Form 1099-R in the TaxAct program, go to our Form 1099-R - Distribution Codes FAQ.