I have a client that retired from military early due to disability. He works and also receives a 1099R the 1099r shows code 7 normal distribution and box 2 shows taxable amount. He is telling me that his friends that are on disabilty exclude the 1099R from their taxes. I told him that the only thing im aware of is that i have a law enforcement client that is disabled and retired and not working.. and the codes on his 1099R are labeled as 3 disability and box 2 shows 0 taxable income. So i told him to maybe speak with his retirement company to see if they can make that change.. but he is wanting me to manually exclude it due to a publication he read pub 525. anyone have any information they can share with me on this is appreciated.