Does VA income count against any unemployment claim?

kapp_badbloodz

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PEB Forum Veteran
Registered Member
Trying to find a reference that states VA income cannot be used to reduce a veterans unemployment compensation. I cannot find it in any law or reference but remember hearing it somewhere. Is it true?

Got out in April and trying to find work. It's difficult due to my injuries and with all my VA appointments. I filed for unemployment 11 weeks ago and I just got paid today. I lost over half of my UC because when they contacted the Air Force they said my medical retirement payments are over 1400 dollars since I'm 50% but they may not know I have a VA waiver of 30% so that income is reduced.

How do I go about proving this and citing specific references? I was owed over 5k in back pay from UC for my claim and today I just got around 1800.

I keep getting screwed left and right and am wondering if this can be fixed. I'm in PA if you need to know the state. Thank you.
 

jahlon

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So, from what you've said you are on the TDRL which is why you are receiving 50%, but the VA only rated you at 30% ?

The VA waiver you speak of, are you referring to the VA tax-free portion of your 50% from the service?

Also, VA payments are considered to be unearned income. They are not taxable.

The only offset for your unemployment assistance should be the reminder of your DOD minus your VA payment. That remaining piece is your taxable income.
 

kapp_badbloodz

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PEB Forum Veteran
Registered Member
So, from what you've said you are on the TDRL which is why you are receiving 50%, but the VA only rated you at 30% ?

The VA waiver you speak of, are you referring to the VA tax-free portion of your 50% from the service?

Also, VA payments are considered to be unearned income. They are not taxable.

The only offset for your unemployment assistance should be the reminder of your DOD minus your VA payment. That remaining piece is your taxable income.
I was medically retired at 50% DOD. My situation is somewhat unique in that I elected to go through LDES and not IDES since I already had done my C&P for BDD so that's why my VA does not match my DoD. I am currently fighting with the VA because they only gave me 10% for my back despite being retired at 50. It's dumb and a huge PITA.

I am referring to the tax free portion. Meaning you can't be paid from both the VA and DOD (unless crcs or crdp). My DoD pay is deducted by the amount of my VA pay. It appears on my retired mypay stub as "VA waiver" and is the same amount I get paid from the VA.

Where can I find this referenced because they do not either believe me or are not following proper protocols and deducting only my DoD portion. They are deducting the full retirement amount despite having a payment and reduction due to VA disability.

I get it. I'll get dinged for a medical retirement pension. But the VA disability shouldn't be deducted at all. WHERE does it say this at specifically is what I'm wondering so I can contact PA UC office and/or file a dispute.

Thank you.
 

jahlon

PEB Forum Regular Member
PEB Forum Veteran
Registered Member
I shall point you into the proper direction:

https://www.irs.gov/publications/p525/ar02.html#en_US_2016_publink1000229318

Military and Government Disability Pensions

Certain military and government disability pensions aren't taxable.

Service-connected disability. You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services.

•The armed forces of any country.
•The National Oceanic and Atmospheric Administration.
•The Public Health Service.
•The Foreign Service.

Conditions for exclusion. Do not include the disability payments in your income if any of the following conditions apply.

1.You were entitled to receive a disability payment before September 25, 1975.

2.You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975.

3.You receive the disability payments for a combat-related injury. This is a personal injury or sickness that:

1.Results directly from armed conflict,

2.Takes place while you are engaged in extra-hazardous service,

3.Takes place under conditions simulating war, including training exercises such as maneuvers, or

4.Is caused by an instrumentality of war.

4.You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA.
 

kapp_badbloodz

PEB Forum Regular Member
PEB Forum Veteran
Registered Member
That's a very good start. Thank you.

Now I just need to find out in PA law where non-taxable disability income is not to be deducted from unemployment.

I'm just confused because UCX is federally funded to the state.
 
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