It sounds like an issue for the Army Board of corrections. The DA 199 is a Department of the Army form and it is the Department of the Army who determined the injuries are combat related.
CRSC, Chapter 61, Residual Retired Pay and Tax Exemption
- Thread starter SRVC_CMPLT
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Hello,
My entire retired pay became CRSC upon approval at 100% years ago. I have zero taxes collected by DFAS. I have no residual retired pay since I was a regular retiree.
Ron
Right, but that would have no effect on any residual retired pay if there were any.
In my case, that would be correct. I did not have a disability retirement. Once I chose the lower percentage of CRSC for the tax benefit since my income from other sources caused a high rate of taxation when receiving CRDP.
Ron
As I am an attorney and not a tax professional, I will tread lightly here. The Armed Forces Tax Council (AFTC) has determined that all CRSC payments are exempt from Federal income tax under Section 104 of Title 26, United States Code; the key to this statement is "CRSC payments." The research into this topic is arduous and intellectually daunting for anyone. Happy hunting!
@RonG Rest assured, I am very aware that the issue is primarily about retired pay, but much of the case law involving the statue mentinoed above overlaps with both topics (CRSC and retired pay). I was communicating that the AFTC exempted CRSC payments, NOT residual retired pay. Hence, understanding the underlying logic is simpler than reading dozens of pages of regulations that usually confuse most people.
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