VA Compensation formula when retired with >=20 years

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xeno

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Assuming there is no CRDP or CRSC calculations:

You start with $1000 from military disability retirement (taxable)
VA Rates you at 50% = $800 (non-taxable).
You cannot receive both, so you have to waive, in part or in whole one benefit.
Given the $1000 is taxable, you will waive $800 in military compensation, in favor of receiving that amount from the VA. You have $200 remaining in military compensation that you receive. So, you get $1000, of which $800 is not taxed and $200 is taxed.

Normally if your VA compensation exceeds your retirement, you would forgo all your retirement, then receive the larger VA check tax free.

(Not Finished) from this point.

With CRDP calculations:

You start with $1000 from military disability retirement (taxable)

With CRSC calculations:

You start with $1000 from military disability retirement (taxable)
 
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