VA Not Paying Difference Between Retired Pay & VA Disability Compensation

Hawkeye99

Hawkeye99

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I was medically retired 28 October 2014 (100% P&T, less than 20 years, no concurrent pay authorized) and received my final VA awards letter 14 Jan 2015. On the 1st page of the letter, it states that I was paid the difference between retired pay & VA disability for the months of Nov & Dec 2014. It states that I was paid $432.24 on Nov 1st and $642.90 on Dec 1st. My retired pay was $2426.00 a month. To date, I have not been paid these amounts. I was, however, paid an amount of $266.46 on Jan 20th. I don't know what this amount is for.

Fast forward...

I asked the VA about this back in February via IRIS and now they get back to me stating:

"After further review of your file it is determined that our records indicate your retro- active payment of $266.46 was issued by direct deposit to your checking account at USAA Federal Credit Union on or about January 20, 2015. This covers the difference that you were paid and what you were supposed to be paid for those months."

and

the VA said I can request a financial audit or breakdown via FOIA to determine if their outcome is correct.

Maybe my math is incorrect, but 100% VA comp minus $2426 for 2 months doesn't equal $266.46.

Has anyone had a similar situation with the VA and does anyone have any advice they might want to share?

I am probably going to see if the DAV will help me, but I figure they will probably just tell me to file the FOIA request. Not even sure exactly how to do that, lol.

Please help!
 
Silly me, I forgot that the VA was paying me $400 for each of the two months in question. VA's math is correct.

That being said, I am still out that $$$. The VA Comp $400 for each of those months was deducted out of my mil retired pay due to not being eligible for concurrent receipt.

Does anyone know if/how I should fix this problem? Should I ask DFAS to reimburse me the money deducted?
 
Hmmm, this kinda hurts my head. I think its a VA problem though

Sounds like you were getting 400 from the VA for comp decided awhile back. So when they upped your rating they only should backdate the difference, so the ~3000 would get reduced to ~2600. But they don't owe you all 2600, only the difference between it and the ~2400 from the military and the 2600. So sounds like they didn't account for the fact you were really only getting ~2000 from the military, making both the VA and the military to deduct the 400 from what was owed to create the double whammy.
 
Yep, I guess I'm gonna just see what the DAV can do for me. My VSO said it's not the VA's problem and I should contact DFAS. As of now, I'm out $800 roughly, so I'm not going to just give up lol.
 
Pretty sure DFAS did the right thing. The had to reduce your pay by the $400. Concurrent receipt laws force that. Then once VA took over payments they are off the hook. DFAS might be worth contacting though, they seem to have a better established and more responsive line for reporting pay problems and they communicate with VA. DFAS deals with far more complex rules; taxes, historical laws, service computation. The FMR is a real labyrinth, the fact DFAS has anyone who can figure out the FMR says they have some smart accountants. VA just lines up rating to a chart, they seem to have few reasons to have people required to handle subtle situations. I imagine DFAS would do the calculations for you and hand them over to the VA to let them know they messed up.
 
All you may have coming to you is the tax deducted from the $400. You can file an amended tax return to get it back.
 
gsfowler said:
All you may have coming to you is the tax deducted from the $400. You can file an amended tax return to get it back.
Click to expand...
I didn't include the income from retired pay when doing taxes. I did, however, include tax paid on the retired pay. I figure when they catch it, I will notify them of the law that I don't have to pay the taxes. Unfortunately, there wasn't an option to notate this when filing online.
 
scoutCC said:
Pretty sure DFAS did the right thing. The had to reduce your pay by the $400. Concurrent receipt laws force that. Then once VA took over payments they are off the hook. DFAS might be worth contacting though, they seem to have a better established and more responsive line for reporting pay problems and they communicate with VA. DFAS deals with far more complex rules; taxes, historical laws, service computation. The FMR is a real labyrinth, the fact DFAS has anyone who can figure out the FMR says they have some smart accountants. VA just lines up rating to a chart, they seem to have few reasons to have people required to handle subtle situations. I imagine DFAS would do the calculations for you and hand them over to the VA to let them know they messed up.
Click to expand...
Yeah, it seems like they both did everything according to what their policies are based on law, however, either one of them has to give in. I shouldn't be out $800 that I am entitled to.
 
It's kinda a bitch to recover the taxes withheld. You must contact DFAS and request an amended W2, based upon the fact that you received VA C&P and that benefit is not taxable.

Once you get the amended W2, you can refile your taxes.
 
I was told that because I received military retirement pay for that period, that I was not authorized the difference between military retirement pay vs. VA Disability Compensation, because I am not eligible for Concurrent Receipt. Is this information correct? Also, I signed up for the Survivor Benefit Plan. Will my spouse still receive half of my Military Retirement Pay even though I am not getting any of it now?
 
gsfowler said:
It's kinda a bitch to recover the taxes withheld. You must contact DFAS and request an amended W2, based upon the fact that you received VA C&P and that benefit is not taxable.

Once you get the amended W2, you can refile your taxes.
Click to expand...
And how cooperative is DFAS when requesting the amended W2?
 
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