Combat Codes and how they relate to ratio for Length of Service Retirement Multipliers

Team,
I am at the tail end of my MEDBOARD. Got my reconsideration from the PEB and now moving onto a VARR. Have a couple questions relating to combat codes and tax-free/taxable ratios of retired military pay.

So, I am ARNG with over 30 years of Service. Almost 24 years of Active-Duty Service and Chapter 1405 time.
I believe will get my VARR back in about 6 weeks and be out of the Army somewhere in mid-Feb. That will give me about 23 Years, 10 Months, and some odd days of Active Service for my Retired Military Pay multiplier.
I understand that I will get this Length of Service Retirement as I have already qualified for Regular Retirement. And I get concurrent receipt of my VA disability compensation.

This would be an about 59.583% x my highest 36 months of basic pay. And I will get that regardless of what the final percentage of my retired military disability is. At least what the MEB Counsel has always told me. Again, and I get concurrent receipt of my VA disability compensation.

So the TOP LINE doesn't change. What matters is the ratio of the taxable portion is to my tax-free portion.
Anything sound wrong? Tell me.

My 199 has the following unfit conditions:
20% condition - no combat codes (no V1/V3).
10% condition - with combat codes (V1/V3).
another 10% condition - with combat codes (V1/V3).
another 10% condition - with combat codes (V1/V3).

So it is now 40% for disability retirement with recommendation that it be permanent.
Proposed VA ratings are 100% P&T.

VARR is about one of my 10% conditions that has a combat code. Should be 40%...maybe the VA will increase to 20%...or maybe say nada. Have to see what VARR response is.

Forgetting the VARR, and looking at where I am now.

MEB counsel says if I get one condition with combat codes, the whole percentage is tax free.
Meaning, the first 40% will be tax-free and the remaining 19.583% will be taxable, right?
Is that correct?

Another VSO said, "well, you got 30% conditions that are combat coded, at least you will get the first 30% tax-free and the remaining 29.583% will be taxable"

Who is right here?
Does getting just one or more of many conditions with combat codes make the entire percentage ratio tax-free?

Thank you!
-Jason
 
Click to expand...
Excited that someone finally responded to my new thread!

I was excited to read your post!

After reading your post however, I am not sure what in the holy heck you are even talking about...

Perhaps you meant to post what you did in another thread or forum?

Eitherway...I would love to try whatever drug you are taking or what you may be smoking....
 
Hi, Jason.
The forum is infested with some bots. If a post is unrelated to the thread just ignore it.
~zazoo
 
trommj said:
Team,
I am at the tail end of my MEDBOARD. Got my reconsideration from the PEB and now moving onto a VARR. Have a couple questions relating to combat codes and tax-free/taxable ratios of retired military pay.

So, I am ARNG with over 30 years of Service. Almost 24 years of Active-Duty Service and Chapter 1405 time.
I believe will get my VARR back in about 6 weeks and be out of the Army somewhere in mid-Feb. That will give me about 23 Years, 10 Months, and some odd days of Active Service for my Retired Military Pay multiplier.
I understand that I will get this Length of Service Retirement as I have already qualified for Regular Retirement. And I get concurrent receipt of my VA disability compensation.

This would be an about 59.583% x my highest 36 months of basic pay. And I will get that regardless of what the final percentage of my retired military disability is. At least what the MEB Counsel has always told me. Again, and I get concurrent receipt of my VA disability compensation.

So the TOP LINE doesn't change. What matters is the ratio of the taxable portion is to my tax-free portion.
Anything sound wrong? Tell me.

My 199 has the following unfit conditions:
20% condition - no combat codes (no V1/V3).
10% condition - with combat codes (V1/V3).
another 10% condition - with combat codes (V1/V3).
another 10% condition - with combat codes (V1/V3).

So it is now 40% for disability retirement with recommendation that it be permanent.
Proposed VA ratings are 100% P&T.

VARR is about one of my 10% conditions that has a combat code. Should be 40%...maybe the VA will increase to 20%...or maybe say nada. Have to see what VARR response is.

Forgetting the VARR, and looking at where I am now.

MEB counsel says if I get one condition with combat codes, the whole percentage is tax free.
Meaning, the first 40% will be tax-free and the remaining 19.583% will be taxable, right?
Is that correct?

Another VSO said, "well, you got 30% conditions that are combat coded, at least you will get the first 30% tax-free and the remaining 29.583% will be taxable"

Who is right here?
Does getting just one or more of many conditions with combat codes make the entire percentage ratio tax-free?

Thank you!
-Jason
Click to expand...
You probably already got the answer but here it is:

You need to have a combat related condition. Just one that is unfitting and then its all tax free with one caveat. Your DOD% must be higher than your longevity as well. So if your longevity is 59%. Then you need your DOD total % to be 60% or higher. So a DOD% at 40% would not work because you would be paid off of your longevity pension earned and not based on disability %.
 
Provis said:
Your DOD% must be higher than your longevity as well
Click to expand...
Thank you for that answer!
I am not doubting you, but do you have the reference/source for "Your DOD% must be higher than your longevity as well"? I like to have references/sources at my fingertips if I need them.

Right now my DOD% is 40% with 3 of the 4 unfitting conditions being combat-coded. My VARR is about one of these conditions that is combat coded and I am still awaiting the results. Three ways it could go: VA rejects it and DOD% remains the same, VA moves it up one-level and would push it up to 50% for DOD, or the VA pushes it up to the level I am asking and that would make 60% DOD.

For Longevity, I should be out in FEB or MAR which would mean either 23 years 10 months (59.583%) OR 23 years 11 months (59.7916%) for longevity percentage for retired pay.

Sincerely,
Jason
 
trommj said:
Thank you for that answer!
I am not doubting you, but do you have the reference/source for "Your DOD% must be higher than your longevity as well"? I like to have references/sources at my fingertips if I need them.

Right now my DOD% is 40% with 3 of the 4 unfitting conditions being combat-coded. My VARR is about one of these conditions that is combat coded and I am still awaiting the results. Three ways it could go: VA rejects it and DOD% remains the same, VA moves it up one-level and would push it up to 50% for DOD, or the VA pushes it up to the level I am asking and that would make 60% DOD.

For Longevity, I should be out in FEB or MAR which would mean either 23 years 10 months (59.583%) OR 23 years 11 months (59.7916%) for longevity percentage for retired pay.

Sincerely,
Jason
Click to expand...
I don't have it pulled up but you can if you like. The reason you need DOD% higher than longevity is that if you are paid based on longevity then your not being paid for a tax exempt reason. So it needs to be based on DOD% since that is what is combat related and causes your pension to be exempt from taxes.
 
Provis,
I appreciate your time in answering and your expertise on all this.

The reason I keep asking is your response is the only one I have seen that mentions this facet.
And it is not what my attorney from the Office of MEB Counsel stated, nor my rep from the SOCOM Warrior Care Coalition - whom I assumed are both experts.

They told me: Since I am over 20 years Active Federal Service, I will always get my YOS Longevity% as my multiplier for Retired Mil Pay (near 60% in my case), regardless if my DOD% is higher or lower than it. And of course, as my proposed ratings from the VA are 100%, I will get concurrent receipt of both Retired Mil pay and VA Disability Compensation. So same amount of money either way.
With regards to my DOD% having combat-coded injuries, they both stated: If my DOD% is higher than my Longevity%, I get the Longevity% amount and it is all tax-free (like you say). In the case where my DOD% is less than the Longevity%, then I get the Longevity% amount with the amount of my DOD% being tax-free and the remainder taxable (doesn't agree with what you posted).

Not trying to be argumentative!
So I decided to try my own research.
Please tell me what you think.

//////////////////////////////////////////--Own Research--//////////////////////
I decided to check the IRS Publication on what is or is not taxable income. It is Publication 525. 2024 version is at this link if you (or others) want to look:

Page 15 has "Special Rules for Certain Employees" with Military being covered on Page 16.
It says a lot of stuff we already know:

"Payments you receive as a member of a military service are generally taxed as wages except for retirement pay, which is taxed as a pension."
"Military retirement pay. If your retirement pay is based on age or length of service, it’s taxable and must be included as a pension on lines...".

That last bolded part doesn't look good for my argument, but it then states at the end of the Military section:
"Disability. If you're retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later."

Ok, the hyperlink takes you to Page 19. Whole section on Military and Government Disability Pensions.
It starts by stating that military disability pensions may be able to be excluded from income if certain conditions are met.
The conditions listed are the same verbiage for conditions listed in the DODI, in the Army Reg, and my DA199 with V1/V3 codes states I meet these conditions. So that is good. I got combat codes and meet the IRS criteria.

THEN, it has this paragraph right after that part:

"Pension based on years of service.
If you receive a disability pension based on years of service, in most cases, you must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), don't include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income."

/////////////////////////////////////--End Own Research--////////////////////////////////////

So how do you read that last bit?

Seems to say the amount of the retirement (i.e., pension) that you would get based on the DOD% is not included in your income (i.e., tax-free) and the rest is included as income (i.e., taxable). Right? So with combat-codes, if the DOD% is less than the Longevity%, you get your military disability retirement computed using the higher Longevity% and exclude the amount from taxable income that would have been computed using the DOD%. Right?

Again, not trying to be argumentative!
 
trommj said:
Provis,
I appreciate your time in answering and your expertise on all this.

The reason I keep asking is your response is the only one I have seen that mentions this facet.
And it is not what my attorney from the Office of MEB Counsel stated, nor my rep from the SOCOM Warrior Care Coalition - whom I assumed are both experts.

They told me: Since I am over 20 years Active Federal Service, I will always get my YOS Longevity% as my multiplier for Retired Mil Pay (near 60% in my case), regardless if my DOD% is higher or lower than it. And of course, as my proposed ratings from the VA are 100%, I will get concurrent receipt of both Retired Mil pay and VA Disability Compensation. So same amount of money either way.
With regards to my DOD% having combat-coded injuries, they both stated: If my DOD% is higher than my Longevity%, I get the Longevity% amount and it is all tax-free (like you say). In the case where my DOD% is less than the Longevity%, then I get the Longevity% amount with the amount of my DOD% being tax-free and the remainder taxable (doesn't agree with what you posted).

Not trying to be argumentative!
So I decided to try my own research.
Please tell me what you think.

//////////////////////////////////////////--Own Research--//////////////////////
I decided to check the IRS Publication on what is or is not taxable income. It is Publication 525. 2024 version is at this link if you (or others) want to look:

Page 15 has "Special Rules for Certain Employees" with Military being covered on Page 16.
It says a lot of stuff we already know:

"Payments you receive as a member of a military service are generally taxed as wages except for retirement pay, which is taxed as a pension."
"Military retirement pay. If your retirement pay is based on age or length of service, it’s taxable and must be included as a pension on lines...".

That last bolded part doesn't look good for my argument, but it then states at the end of the Military section:
"Disability. If you're retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later."

Ok, the hyperlink takes you to Page 19. Whole section on Military and Government Disability Pensions.
It starts by stating that military disability pensions may be able to be excluded from income if certain conditions are met.
The conditions listed are the same verbiage for conditions listed in the DODI, in the Army Reg, and my DA199 with V1/V3 codes states I meet these conditions. So that is good. I got combat codes and meet the IRS criteria.

THEN, it has this paragraph right after that part:

"Pension based on years of service.
If you receive a disability pension based on years of service, in most cases, you must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), don't include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income."

/////////////////////////////////////--End Own Research--////////////////////////////////////

So how do you read that last bit?

Seems to say the amount of the retirement (i.e., pension) that you would get based on the DOD% is not included in your income (i.e., tax-free) and the rest is included as income (i.e., taxable). Right? So with combat-codes, if the DOD% is less than the Longevity%, you get your military disability retirement computed using the higher Longevity% and exclude the amount from taxable income that would have been computed using the DOD%. Right?

Again, not trying to be argumentative!
Click to expand...
So in practice, the DFAS does all or nothing for tax exemption. So even if you had 1 condition unfitting at 10% that was combat related and all of your unfitting conditions =60% then your chapter 61 pension of which is paid out at 60% is completely tax exempt.

I did extensive research on this since my wife had 20 YOS and was medically retired with one unfitting condition out of 3 unfitting conditions.

I nailed this down by researching how DFAS treats everything because its the application that counts. DFAS states that your DOD% must exceed your YOS% to get tax exemption.

See this link:

See this quote in that link:

TDRL/PDRL Exemption: If you retired under a disability law (Temporary Disability Retirement List or Permanent Disability Retirement List), your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage and you meet one of the following conditions:

Regardless of the answer your gross compensation number will be the same. I am going by DFAS's interpretations since they are the ones that process the retirement pay. I could definitely be wrong but I have seen so much misinformation in this area that I would never trust JAG, Retirement Services etc. They spit out the same information for everyone and they never check to verify if that information is correct. I have always found DFAS to be the most reliable since its there job to apply the laws, rules & regulations since they are the ones that process and administer the pay.

You are in a great situation regardless of whether you are exempt from taxes for your pension part. Also, look into CRSC. That may be another way to get all or close to all of your income exempt. The way the numbers usually work for CRSC you want your CRSC income to mirror the total amount of your VA income.
 
trommj said:
Provis,
I appreciate your time in answering and your expertise on all this.

The reason I keep asking is your response is the only one I have seen that mentions this facet.
And it is not what my attorney from the Office of MEB Counsel stated, nor my rep from the SOCOM Warrior Care Coalition - whom I assumed are both experts.

They told me: Since I am over 20 years Active Federal Service, I will always get my YOS Longevity% as my multiplier for Retired Mil Pay (near 60% in my case), regardless if my DOD% is higher or lower than it. And of course, as my proposed ratings from the VA are 100%, I will get concurrent receipt of both Retired Mil pay and VA Disability Compensation. So same amount of money either way.
With regards to my DOD% having combat-coded injuries, they both stated: If my DOD% is higher than my Longevity%, I get the Longevity% amount and it is all tax-free (like you say). In the case where my DOD% is less than the Longevity%, then I get the Longevity% amount with the amount of my DOD% being tax-free and the remainder taxable (doesn't agree with what you posted).

Not trying to be argumentative!
So I decided to try my own research.
Please tell me what you think.

//////////////////////////////////////////--Own Research--//////////////////////
I decided to check the IRS Publication on what is or is not taxable income. It is Publication 525. 2024 version is at this link if you (or others) want to look:

Page 15 has "Special Rules for Certain Employees" with Military being covered on Page 16.
It says a lot of stuff we already know:

"Payments you receive as a member of a military service are generally taxed as wages except for retirement pay, which is taxed as a pension."
"Military retirement pay. If your retirement pay is based on age or length of service, it’s taxable and must be included as a pension on lines...".

That last bolded part doesn't look good for my argument, but it then states at the end of the Military section:
"Disability. If you're retired on disability, see Military and Government Disability Pensions under Sickness and Injury Benefits, later."

Ok, the hyperlink takes you to Page 19. Whole section on Military and Government Disability Pensions.
It starts by stating that military disability pensions may be able to be excluded from income if certain conditions are met.
The conditions listed are the same verbiage for conditions listed in the DODI, in the Army Reg, and my DA199 with V1/V3 codes states I meet these conditions. So that is good. I got combat codes and meet the IRS criteria.

THEN, it has this paragraph right after that part:

"Pension based on years of service.
If you receive a disability pension based on years of service, in most cases, you must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), don't include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income."

/////////////////////////////////////--End Own Research--////////////////////////////////////

So how do you read that last bit?

Seems to say the amount of the retirement (i.e., pension) that you would get based on the DOD% is not included in your income (i.e., tax-free) and the rest is included as income (i.e., taxable). Right? So with combat-codes, if the DOD% is less than the Longevity%, you get your military disability retirement computed using the higher Longevity% and exclude the amount from taxable income that would have been computed using the DOD%. Right?

Again, not trying to be argumentative!
Click to expand...
Also, regardless of the answer please come back and let us know the results! That's the only way we can learn and continue to give good information out to everyone!
 
Thank you!
I have a few more things to say and a couple questions.

First, I will NOT be able to tell you how it all works out!
It is moot....an academic discussion for me!

UPDATE: Just got my VARR Response and amended DA199 this morning. VA moved one of my 4 unfitting conditions from 10% to 40%, like I requested.
It made my DOD% 60.
40% condition - with combat codes (V1/V3).
20% condition - without combat codes (no V1/V3).
10% condition - with combat codes (V1/V3).
10% condition - with combat codes (V1/V3).

I will be out with 23 years, 10 months, and a handful of days of Active Federal Service (confirmed and with Chapter 1405 time already included). I understand whole months also count along with whole years when computing YOS Retirement Multiplier/%.
So YOS Longevity % would be 59.583%. DOD% is higher. So it should be all tax-free along with CRDP for my 100% VA.

//////////////////////////////////// All or nothing ///////////////////////////////

Your post did answer my initial question though. Having just one unfitting conditions with combat-codes makes the entire DOD% tax-free. What my MEB Cousel told me as well before. Though SOCOM rep wasn't completely sure, though he did mention that DFAS should just make it all tax-free in such situations. Just like you mentioned
So that sounds good!

////////////////// DFAS states that your DOD% must exceed your YOS% to get tax exemption ////////////////

I read your link, and I don't believe the DFAS guidance EXACTLY means "that your DOD% must exceed your YOS% to get tax exemption"
I mean, it says, "....your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage...".
Right, if your DOD% is higher than Longevity%, then DFAS uses the higher one (DOD%) to calculate Retired Military Pay and it is fully non-taxable. Check...makes sense if you have combat codes.
If Longevity% is higher, then DFAS uses that to calculate Retired Military Pay. Got it. But DFAS doesn't explicitly address this situation on that web page for what portion or portions is taxable versus tax-exempt. I submit it is an oversight and not complete guidance.

That little section in the IRS publication has been in that publication since 2010 (cannot find older versions to check). It DOES address this situation though:
"Pension based on years of service.
If you receive a disability pension based on years of service, in most cases, you must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), don't include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income."

Now, I agree that DFAS is gonna do what DFAS is gonna do. They may use your higher Longevity% to calculate Retired Military Pay (correct) and then they may very well classify all that pay as taxable. Nothing you can do about that.

HOWEVER, The IRS Guidance is....the IRS Guidance...
It is what you reference and use when you file your 1040. And what you reference if you have to fight with the IRS (or get audited).
So if I had a combat-coded DOD% and my Longevity% was higher, and DFAS paid me based on the higher Longevity% and classified all that pay as taxable...

THEN really wouldn't care what DFAS puts on my end of the year W2 and reports to the IRS.
I would follow the IRS guidance that says "don't include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income."

Now....I would probably also consult a tax attorney knowledgeable in this matter before filing my taxes and have my DA199 ready as proof if the IRS audited me.

But now I don't have to worry about all this!
Still think this knowledge is important on this forum in case others get in this situation.

///////////////////////////////// CRSC ///////////////////////////////////

I have researched CRSC and my SOCOM rep mentioned helping me do the application when this is all over.
Believe you me, I will certainly do it if there is more money out there.

However, I didn't think I was eligible for CRSC
From the Army HRC webpage (https://www.hrc.army.mil/content/CRSC (Combat-Related Special Compensation):
"With CRSC you can receive an amount equal to or less than your length of service retirement pay and your VA disability compensation, if the injury is combat-related".
I will already be getting my length of service retirement pay and VA Disability due to Concurrent Receipt (CRDP), so what could I even get?

From the VA webpage on CRSC (Combat-Related Special Compensation (CRSC) | Veterans Affairs):
it states one of the 3 required eligibility requirements is, "you currently have your DoD retirement payments reduced by the amount of your VA disability payments".

With getting concurrent receipt (CRDP), I won’t have to have my DoD retirement reduced. So not eligible right?

Also, DFAS has this FAQ: https://www.dfas.mil/RetiredMilitary/disability/CRDP-CRSC-FAQs/. It states:

“It is possible to be eligible for both Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC). However, you cannot receive both of them at the same time.”

So even if I get eligible for CRSC, I would have to give up concurrent receipt (CRDP) of my VA, and that would seem a horrible choice.

/////////////////////////////////////////////////

Sorry for the length!
 
trommj said:
Thank you!
I have a few more things to say and a couple questions.

First, I will NOT be able to tell you how it all works out!
It is moot....an academic discussion for me!

UPDATE: Just got my VARR Response and amended DA199 this morning. VA moved one of my 4 unfitting conditions from 10% to 40%, like I requested.
It made my DOD% 60.
40% condition - with combat codes (V1/V3).
20% condition - without combat codes (no V1/V3).
10% condition - with combat codes (V1/V3).
10% condition - with combat codes (V1/V3).

I will be out with 23 years, 10 months, and a handful of days of Active Federal Service (confirmed and with Chapter 1405 time already included). I understand whole months also count along with whole years when computing YOS Retirement Multiplier/%.
So YOS Longevity % would be 59.583%. DOD% is higher. So it should be all tax-free along with CRDP for my 100% VA.

//////////////////////////////////// All or nothing ///////////////////////////////

Your post did answer my initial question though. Having just one unfitting conditions with combat-codes makes the entire DOD% tax-free. What my MEB Cousel told me as well before. Though SOCOM rep wasn't completely sure, though he did mention that DFAS should just make it all tax-free in such situations. Just like you mentioned
So that sounds good!

////////////////// DFAS states that your DOD% must exceed your YOS% to get tax exemption ////////////////

I read your link, and I don't believe the DFAS guidance EXACTLY means "that your DOD% must exceed your YOS% to get tax exemption"
I mean, it says, "....your retired pay will be fully non-taxable if your pay is calculated based upon your military (not VA) disability percentage...".
Right, if your DOD% is higher than Longevity%, then DFAS uses the higher one (DOD%) to calculate Retired Military Pay and it is fully non-taxable. Check...makes sense if you have combat codes.
If Longevity% is higher, then DFAS uses that to calculate Retired Military Pay. Got it. But DFAS doesn't explicitly address this situation on that web page for what portion or portions is taxable versus tax-exempt. I submit it is an oversight and not complete guidance.

That little section in the IRS publication has been in that publication since 2010 (cannot find older versions to check). It DOES address this situation though:
"Pension based on years of service.
If you receive a disability pension based on years of service, in most cases, you must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), don't include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income."

Now, I agree that DFAS is gonna do what DFAS is gonna do. They may use your higher Longevity% to calculate Retired Military Pay (correct) and then they may very well classify all that pay as taxable. Nothing you can do about that.

HOWEVER, The IRS Guidance is....the IRS Guidance...
It is what you reference and use when you file your 1040. And what you reference if you have to fight with the IRS (or get audited).
So if I had a combat-coded DOD% and my Longevity% was higher, and DFAS paid me based on the higher Longevity% and classified all that pay as taxable...

THEN really wouldn't care what DFAS puts on my end of the year W2 and reports to the IRS.
I would follow the IRS guidance that says "don't include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income."

Now....I would probably also consult a tax attorney knowledgeable in this matter before filing my taxes and have my DA199 ready as proof if the IRS audited me.

But now I don't have to worry about all this!
Still think this knowledge is important on this forum in case others get in this situation.

///////////////////////////////// CRSC ///////////////////////////////////

I have researched CRSC and my SOCOM rep mentioned helping me do the application when this is all over.
Believe you me, I will certainly do it if there is more money out there.

However, I didn't think I was eligible for CRSC
From the Army HRC webpage (https://www.hrc.army.mil/content/CRSC (Combat-Related Special Compensation):
"With CRSC you can receive an amount equal to or less than your length of service retirement pay and your VA disability compensation, if the injury is combat-related".
I will already be getting my length of service retirement pay and VA Disability due to Concurrent Receipt (CRDP), so what could I even get?

From the VA webpage on CRSC (Combat-Related Special Compensation (CRSC) | Veterans Affairs):
it states one of the 3 required eligibility requirements is, "you currently have your DoD retirement payments reduced by the amount of your VA disability payments".

With getting concurrent receipt (CRDP), I won’t have to have my DoD retirement reduced. So not eligible right?

Also, DFAS has this FAQ: https://www.dfas.mil/RetiredMilitary/disability/CRDP-CRSC-FAQs/. It states:

“It is possible to be eligible for both Concurrent Retirement and Disability Pay (CRDP) and Combat-Related Special Compensation (CRSC). However, you cannot receive both of them at the same time.”

So even if I get eligible for CRSC, I would have to give up concurrent receipt (CRDP) of my VA, and that would seem a horrible choice.

/////////////////////////////////////////////////

Sorry for the length!
Click to expand...
Congratulations!

You can only get one or the other for CRSC verse CRDP. Since your chapter 61 pay is tax exempt and you have 20+ AFS to get paid your VA compensation which is tax free there is no benefit in applying for CRSC. You have maxed out compensation since you will be paid for all of your earned pension and all of your VA compensation and since both are exempt from taxes you have hit max payout.

My wife was O4 AGR with 17AFS and 20 good years. It was very scary process for her because if she didn't get a high DOD% and get approved for a large enough CRSC% she would have lost thousands per month until she reached the age for her Reserve retirement. Since she joined at 17. She was a Chaplain's Assistant and then used her TA to finish college and during the height of the wars she was approved to be direct commissioned from enlisted E6 with 8 years to O1. She was able to go from O1 to O4 in 12 years. I was and am still very proud of her. So much sacrifice to get to the end. That's why I advocate for everyone to fight for the best result that is owed. Its crazy how Soldiers with similar health conditions and time in service can have wide variations in outcome based on the quality of their representation and the acumen he or she has in regards to navigating this process.
 
Thanks for that info on CRSC. Definitely what I thought. Good to hear confirmation though and that all my work has paid off...maxing where and what I could have.

Appreciate you sharing your wife's experiences. Agree it is frustrating to see folks with similar circumstances get crazy different results...often by not having all the right knowledge and how to use it. I certainly want to use my experience to help others and plan to stay on this forum sharing. Probably why I spent sooo much time looking into that IRS stuff. Who knows. Maybe someone will use it, find out it does help and work, and shares it here.

Thanks again!

Jason
 
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