TAX FREE PAY??

bleacherspy

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#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

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#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

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#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.