TAX FREE PAY??

bleacherspy

PEB Forum Veteran
Registered Member
#1
Medically retired from Navy on 29 OCT with a combined rating of 100%. I'm over 20yrs so eligible for CRDP. My PEB findings letter says my disability was the direct result of a combat related injury in the line of duty by an instrumentality of war. Under the legacy codes section, the letter shows a combat code of 1.

Does that mean my pay will be tax free?

I am waiting on my final VA ratings letter so I can apply for CRSC, so while I'm asking does anyone know if that will be "automatic" since the PEB put those statements on my findings letter?
 

gsfowler

Staff Member
PEB Forum Veteran
#2
Your regular retirement that you will receive will be taxed. Your VA C&P will be tax free. If you apply for and are granted CRSC, that may change the tax implications.

CRSC is never "automatic"
 

bleacherspy

PEB Forum Veteran
Registered Member
#3
As luck would have it, I got my official letter from DFAS right after I posted this telling me what my pay would be and how it would be taxed. My DOD pay is tax free! Not sure if it was the 100%, or the combat related finding with the 1 code, but I will take it.
 

bigdinz

Registered Member
#4
As luck would have it, I got my official letter from DFAS right after I posted this telling me what my pay would be and how it would be taxed. My DOD pay is tax free! Not sure if it was the 100%, or the combat related finding with the 1 code, but I will take it.
bleacherspy--What type of retirement is listed on your DD214? Block 28 specifically. I believe mine shouldn't be taxed but I have no way to tell.
 

bleacherspy

PEB Forum Veteran
Registered Member
#5
Disability, Permanent... your board results should have some sort of wording about being combat related and/or a "1" in the combat code in the DES findings letter.
 
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