VA disability and how it is affected by severance pay

randall.mercer

Member
Registered Member
First I would like to thank everyone involved in this forum for the information. It made my transition and understanding of the PEB process easier in 2008 when I was put on TDRL status. that being said in my second physical on TDRL the USAF decided to drop my rating to 10 percent discharge with severance pay. There are several things I understand about this process and some I dont. I know that I will be initialy taxed on severance and have to submit my findings from the VA and I am being payed 90% disablity for the same issue from the VA. So that should mean I get my severance taxes back correct?
Also the reason for discharge from the air force is optic nueritis. the va rated optic nueritis in two categories 70 percent for visual field and 50 percent for visual acuity. what i am wondering is at what rate will the va hold my compensation to recoupe the severance. If they hold my whole check it will create a financial hardship and I do not know how to fight this should it occur any help.
Thanks
 
I was discharged with a 10% and severance pay, you are correct you will pay taxes on the severance money when you recieve it but you will get it back on your taxes for the year...now I'm 70% va disability but they hold out 10% per paycheck till the pay is repaid...right now my package is before the PDRB board...mar will be a year..you might need to put your package forward to the pdrb board also, the 10% at discharged and va at 90% right now, if the board agrees you will get retirement back to your discharge date..check this board for more information about the pdrb...
 
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