Questions Regarding CRDP Entitlement

[DICK HILL]

The VA recently increased my VA final degree of disability from 50 percent to 80 percent.

Yesterday, I received a letter from the VA regarding my CRDP retro pay and today the CRDP retro pay was deposited in my bank account.  Following is the exact verbage of the letter:  The letter also came with a VA Form 4107 (Your Rights to Appeal Our Decision).

Department of Veterans Affairs                            January 06, 2016
6800 Almeda Rd
Houston TX 77040

Richard L. Hill

The Defense Authorization Acts of 2003 and 2004 established two programs whereby certain military retirees may have restored to them some or all of the retired pay they waived as required by law to receive disability compensation from Department of Veterans Affairs (VA).  VA has worked with the Defense Finance and Accounting Service
(DFAS) Cleveland to develop a method for making retroactive Combat Related Special Compensation (CRSC), Concurrent Receipt of Retired and Disability Pay (CRDP) payments and VA disability payments previously withheld but now permitted by law.

What Is Your VA Entitlement

Based on the information in your military retired pay files and the VA records, you are entitled to a retroactive compensation payment of $8,073.67.  This payment covers the period 11-2014 through 10-2015.  The figures used to calculate this amount are shown on the back of this letter.

Who To Contact If You Have Questions or Need Assistance

If you reside in the Continental United States, Alaska, Hawaii or Puerto Rico, you may contact VA with questions and receive free help by calling our Toll-free number 1-800-827-1000 (for hearing impaired TDD 1-800-829-4833).  You may also contact DFAS at 1-800-321-1080 for information concerning CRSC and CRDP payments.

If you call VA, please refer to the VA file number shown above.  If you write to us, put your full name and VA file number on the letter.  You can visit our web site at www.va.gov for more information about veterans' benefits.

A copy of this letter was sent to the service organization or individual you appointed as your representative.  If you have questions or need assistance completing your claim you can also contact them.  (NOTE:  I contacted my appointed representative from Texas Vet Commission and she is as confused as I am).

EMILE DUFRENE
VETERAN SERVICE CENTER MANAGER

Enclosure:  VA Form 4107

The following was on the reverse of the letter

Entitlement Gross Retired Pay    VA Waiver      Retired Net Pay       CRDP %   CRDP Award   CRDP Paid   VA Award    VA Paid   VA Withheld   Total Dual            Due
Month                                                                                                                                                                                                                  Payment Due      From VA

NOV 14       2,391.00               822.15             1,568.85              80             1,525.55         822.15         1,525.55     822.15    703.40            703.40                  703.40
DEC 14       2,431.00               836.13             1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
JAN 15       2,431.00               836.13             1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
FEB 15       2,431.00               836.13             1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
MAR 15      2,431.00               836.13            1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
APR 15       2,431.00               836.13            1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
MAY 15      2,431.00               836.13            1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
JUN 15       2,431.00               836.13            1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
JUL 15       2,431.00               836.13            1,594.87              80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
AUG 15      2,431.00               836.13           1,594.87               80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
SEP 15       2,431.00               836.13           1,594.87               80             1,551.48         836.13         1,551.48     836.13     715.35           715.35                  715.35
OCT 15     2,431.00               1,334.71        1,096.29               80-            1,551.48         1,334.71      1,551.48     1,334.71   216.77           216.77                 216.77
                                                                                                                                                               TOTAL AMOUNT DUE FROM VA                            $8,073.67

My questions are:

Why does the above Gross Retired Pay show $2,431.00 but the Retired Net Pay shows anywhere from $1,098.29 to $1,568.85?  My Air Force Retired check has always been $1,996.24.

Why was I sent a VA Form 4107 (Your Right s to Appeal Our Decision)?  Why would I want to appeal the decision regarding approving my CRDP retro pay?

I thought CRDP was non-taxable, but I read somewhere on the DFAS web site this morning that it is taxable.  The only 1099 I have ever received is one from DFAS showing my Air Force retired pay.  Now I am wondering am I gonna get stuck with paying taxes on the CRDP money I have collected over the past five years?

If there is anyone out there who can get me unconfused, please help.

Dick Hill

[rootbeer22]

Dick:

 

I'm in the same  boat  trying to figure it out. I'm sending my "thick" tax package into my accountant/CPA...so I'll no pretty soon and will let you know. I never spent any of the retro so it there is a bug tax hit,....this will help the pain. I was under the impression that it would all be tax -free, I guess you could go the  CSRC route which is "all" tax free but that's going to take some time and there's no guarantee that they will even approve it... besides who wants to go thru another approval process anyway?

 

Godspeed Rootbeer22

[Berta]

I replied to this Rootbeer, in a different post you made.

CRDP and CRSC is searchable here and many links I gave when I explained it here years ago , came from Military.com, whose explanations and discussions were clear as to the differences.

I hope those links still work.The one in my reply minutes ago still works.