INCAP and SSDI

J

Jack

PEB Forum Regular Member
PEB Forum Veteran
Could someone explain why SS comp mentioned in reg below may/will reduce INCAP? I get why the DOD state VBA. I also hear from those that have rec'd INCAP and SSDI that they paid more taxes than normally would for the INCAP rec'd.
Please give exact examples but not your own. Does anyone know any legal ruling on this and where it may be found?
Also according to the reg below if DVA or Social Security compensation is not for same condition would it be a fact that this post would be moot?
Thanks.

DA PAM 135–3812–2. Unit processing procedures(9) Soldiers should be informed that the DVA or Social Security compensation collected during this period for the same injury, illness, or disease may offset the amount of incapacitation pay.
 
This is from 2006, your reference is from 2008. Not sure if the 2008 issuance makes the bolded section from 2006 obsolete or not.

AR 135-381 ¶ 2-3

Department of the Army Publications
Series 135. Army National Guard and Reserve
Army Regulation 135-381. Incapacitation of Reserve Component Soldiers
Chapter 2. Eligibility Requirements (Refs & Annos)
2-3. Criteria
a. Incapacitation pay and allowances after release from AD for IDT may be authorized for RC Soldiers, for a period of up to 6 months. The Secretary of the Army or an authorized representative may extend the 6-month period in the interest of fairness and equity. See 37 USC 204(i)(2) and DODI 1241.2 for LDI injury, illness, or disease incurred or aggravated under any of the following conditions:
(1) Serving on AD for more than 30 days, or traveling to or from such duty (Soldiers qualify only if they do not extend their orders).
(2) Participating on IDT or ADT orders for 30 days or less (see para 2-1).
(3) Participating in organized athletics under the provisions of AR 350-1, paragraph 2-8, or undergoing cardiovascular screening at the time they are disabled.
b. Request for extension of incapacitation pay or continuation of AD beyond the 6-month period must be, in relevant part, approved by the Secretary of the Army or a designee.
c. Soldiers may not be disqualified from receipt of incapacitation pay, provided otherwise qualified, solely because they are--
(1) Participating in the Army Weight Control Program.
(2) Not wearing the military uniform at time of injury, illness, or disease.
(3) Participating in organized athletics, the Army Physical Fitness Program, or cardiovascular screening at the time they are disabled.
(4) Members of the ROTC-SMP (for injury, illness, or disease incurred or aggravated ILD while training with their RC unit only).
d. Incapacitation pay and allowances will not be authorized for Soldiers--
(1) When the injury, illness, or disease or the aggravation of an injury, illness, or disease is the result of gross negligence or misconduct.
(2) When the injury, illness, or disease occurred NLD.
(3) When the injury, illness, or disease was incurred or aggravated while completing correspondence courses.
(4) When denied compensation by an incapacitation board action (see DA Pam 135-381, chap 3).
(5) When a loss of nonmilitary compensation is as a result of an unauthorized elective medical, surgical, or dental treatment.
(6) When an injury or illness is incurred or aggravated during airborne operations not authorized per paragraph 2-10.
(7) For travel status related injury, illness, or disease when travel is not direct and/or completed within a reasonable period of time.
(8) Beyond the 6-month statutory limitation, in relevant part, unless approved by the Secretary of the Army or a designee.
e. The member's entitlement to healthcare and pay and allowances under this regulation will terminate, or be reduced as appropriate, on the date that one of the following actions occurs:
(1) The member is found fit for duty, except in the case of a Soldier able to demonstrate the loss of earned income in accordance with paragraph 1-9.
(2) The member no longer demonstrates a loss of earned income in the case of a member covered under paragraph 1-9.
(3) The member is separated or retired.
(4) The State Adjutants General, the Commander, HRC-St. Louis, and designated commanders of USAR headquarters determine that it is no longer in the interest of fairness and equity to continue pay and allowances under 37 USC 204(g) or 37 USC 204(h).
(5) The Soldier loses disabled status by failing to cooperate with the Army's efforts to evaluate the physical status of the Soldier for final disposition of the case.
(6) The Soldier receives DVA payments for the same condition justifying their incapacitation pay. It is the Soldier's responsibility to notify the DVA to reduce the disability compensation upon receipt of incapacitation pay during the same period. The Soldier is also responsible for coordinating with the servicing DVA representative to reimburse for any overpayments of DVA compensation while receiving incapacitation pay for the same disabling condition at the same time. If the DVA disability compensation was paid before the Soldier was authorized incapacitation pay, the amount of the disability compensation will be deducted from the incapacitation pay.
(7) The Soldier receiving incapacitation payment also receives income from an income supplemental program. This income is considered earned income for the purposes of 37 USC 204 and the incapacitation pay will be appropriately reduced. Incapacitation pay will not be affected by Social Security disability payments, which is not considered earned income when calculating incapacitation pay. However, eligibility to receive Social Security disability payments may be affected by receipt of incapacitation pay.
(8) The Soldier receives income from civilian employment, including self-employment. This includes normal wages, salaries, professional fees, tips, or other compensation for personal services actually rendered, as well as income from income protection plans, vacation pays, and sick leave that the Soldier elects to receive. It does not include rents, royalties, retirement pays, dividends or interest, welfare payments, or other nontaxable Government benefits. Soldiers who are in receipt of DVA benefits may elect to receive either military pay or DVA pay under DOD 7000.14-R, Volume 7A, chapter 57, paragraph 570104. Soldiers can receive both welfare payments and incapacitation pay at the same time. However, receipt of the incapacitation payments may affect the Soldier's welfare eligibility in regard to state or local regulations/requirements. Welfare eligibility status is an issue between the Soldier and the local welfare officials.
Effective 27 January 2007
27 December 2006

Army Reg. 135-381 ¶ 2-3, AR 135-381 ¶ 2-3


2-3. Criteria, Army Reg. 135-381 ¶ 2-3
 
Yes. Same condition may be moot. IDK. SSDI payment may be reduced or affected during tax time. I'd like to see some examples from those that have been through this situation.
 
Jack said:
Could someone explain why SS comp mentioned in reg below may/will reduce INCAP? I get why the DOD state VBA. I also hear from those that have rec'd INCAP and SSDI that they paid more taxes than normally would for the INCAP rec'd.
Please give exact examples but not your own. Does anyone know any legal ruling on this and where it may be found?
Also according to the reg below if DVA or Social Security compensation is not for same condition would it be a fact that this post would be moot?
Thanks.

DA PAM 135–3812–2. Unit processing procedures(9) Soldiers should be informed that the DVA or Social Security compensation collected during this period for the same injury, illness, or disease may offset the amount of incapacitation pay.
Click to expand...


I was on INCAP and can explain it. Word for word below is DoDI 1241.2 and as I highlighed in red text INCAP is paid only for lost income. For example if you have Aflac and get hurt and Aflac is paying you your INCAP will be reduced by that amount. So if your Base pay is 3000 and your BAH is 900 and BAS is 240 and your income is 1000 a month then your LES will say your Base Pay was 3000 and you received 140 in BAH and no BAS. That's why you pay more taxes on the two total because the last thing they give you are non-taxable allowances and the first thing they take away if you have income are non-taxable allowances. Hope this helps!

6.2. Pay and Allowances Entitlement
6.2.1. A member of the Reserve component who incurs or aggravates an injury, illness, or disease in the line of duty is entitled to pay and allowances, and travel and transportation incident to medical and/or dental care, in accordance with 37 U.S.C. 204 and 206, and DoD 7000.14-R, Volume 7A (references (c) and (d)). The amount of pay and
allowance authorized for the member is determined in accordance with table 57-3 of reference (d).

6.2.1.1. Member Unable to Perform Military Duties
6.2.1.1.1. A Reserve component member who is unable to perform military duties, as determined by the Secretary concerned, due to an injury, illness, or disease incurred or aggravated in the line of duty is entitled to full pay and allowances, including all incentive and special pays to which entitled, if otherwise eligible, less any earned income as provided under 37 U.S.C. 204(g) (reference (c)) and DoD 7000.14-R, Volume 7A (reference (d)). This has been commonly referred to as incapacitation pay.
6.2.1.1.2. A member authorized pay and allowances under Section 204(g) of reference (c) shall not be allowed to attend inactive duty training periods or to acquire retirement points for performing inactive duty training. However, a member may earn retirement points in order to satisfy the requirements for a qualifying year of service by completing
correspondence courses approved by the Secretary concerned.

6.2.1.2. Member Able to Perform Military Duties
6.2.1.2.1. A Reserve component member who is able to perform military duties, as determined by the Secretary concerned, but demonstrates a loss of earned income as a result of an injury, illness, or disease incurred or aggravated in the line of duty is entitled to pay and allowances, including all incentive and special pay to which entitled, if otherwise eligible, but not to exceed the amount of the demonstrated loss of earned income or the amount equal to that specified in subparagraph 6.2.2., below, whichever is less.
6.2.1.2.2. The Assistant Secretary of Defense for Reserve Affairs shall be provided a copy of the
approval notice for payment of pay and allowances in excess of 24 months under this subparagraph.

6.2.2. Maximum Pay Entitlement.
The total amount of pay and allowances authorized under Sections 204(g) or 204(h) of reference (c) and compensation under Section 206(a) of reference (c) for a member who is entitled to such pay shall not exceed the amount of pay and allowances provided by law or regulation for a member of a Regular component of a Uniformed Service of corresponding grade and length of service for that period as provided in Section 204(i) of reference (c).
 
bobby,

Ok. I understand fully INCAP minus your job/earned income in short. So how does SSDI play a part with INCAP regarding taxes?

THX
 
Jack,

If your SSDI check is $500 then $500 will be taken first from your BAS and then the ramaining $260 will be taken from your BAH. You only pay taxes on Base Pay and not for BAH/BAS. If your SSDI is taxable then you are paying taxes on your SSDI and also on your Base Pay so it would be more because when finance subtracts the offset they take away untaxable allowances first. If the SSDI is untaxable then it shouldn't matter.
 
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