Sorry, I'm not sure about the retirement check, but I can tell you that the disability check is absolutely tax free. I always think if you have had a significant change in income during the year (retirement, lots of medical bills, started a business) it's a good idea to hire an accountant to make sure you are getting all of your deductions, credits, etc. Then next year you can do them yourself, but you would hate to miss anything over the next 10+ years right?

My husband is medically retired and his disability and his retirement pay are tax free because he was retired under medical conditions.

As for a regular military retirement, I don't believe that it is taxable income either, but I would double check with DFAS or a tax accountant.

My disibility is not taxable but you still have to report it on your taxes below is the irs help site with help line phone #they can give you free tax help
http://www.irs.gov/newsroom/article/0,,id=103554,0 0.html

No, disability compensation from the VA is not taxable.

No, VA disability compensation is not taxable.

Not taxable, but still have to report it to irs.

Everyone is correct that the disability pay is not taxable but you must keep in mind that the check you receive for that disability has been subtracted from his retirement pay. The only financial benifit your husband is receiving for this disability is the tax savings from that amount. For example, if your check is $100 and your taxes are 20%, then you save $20. This is because his rate is 10%. If the rate was 50% or higher, then he would receive 50% tax free and it would NOT come from his retirement pay. Kind of a bummer but look at the bright side. Be thankful your husband doesn't have a 50% disability.

I think all military disability checks are tax free. Else why would people do the army?

Yes the above site is useful. I have checked it. There some FAQ's also which are very informative regarding your concerns. But that is true that the disability pay is not taxable.