DD Form 2698, Application for Transitional Compensation, January 1995-2025

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pdf, transitional compensation payments are not taxable. Transitional compensation recipients should not expect to receive a Form 1099 for tax purposes. Also, recipients need not report transitional compensation payments on their tax return.
1059 - U.S. Code - Unannotated Title 10. Armed Forces 1059. Dependents of members separated for dependent abuse: transitional compensation; commissary and exchange benefits. (a) Authority to pay compensation.
Transitional compensation is a temporary resource that provides financial support and other help to dependent victims of abuse. If you are a military spouse or active-duty service member spouse who experienced abuse while your spouse was active duty, you may be eligible for this resource.
If you are a military spouse or active-duty spouse who has left an abusive relationship, and your service member spouse has been separated from the service due to domestic or child abuse, you may be eligible for transitional compensation as a way to help you get back on your feet.
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