I have a client who has a letter dated January 14, 2020, which is a summary of his VA benefits.  He is telling me his 1099-R (which has an amount listed in Box 2), is considered nontaxable.  I have been trying to find a specific answer but I see answers that say both yes and no.  I have looked over Publication 529 - Military and Government Disability Pensions and based on what I can tell, it doesn't sound like his 1099-R would be nontaxable.  Am I correct or am I completely incorrect?

Thank you in advance.