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14 Questions about Veterans Disability Compensation Benefits Claims 

When a Veteran starts considering whether or not to file a VA Disability Claim, there are a lot of questions that he or she tends to ask. Over the last 10 years, the following are the 14 most common basic questions I am asked about when it comes to filing VA Disability Claims.









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roses15534

Dfas And Va Retro Pay

Question

Ok I went from 30% to 80% was informed this in sept 2012 this dates back to the effective date of dec 2010. so basically 20 months of retro pay i assume i know I know what assuming does. But if its 20 months and my retired pay is 1,600.00 and my crdp is 1,600.00 a month I have got my first payment.

Is it 1600.00 for the 20 months? how is it determined what dfas pays and va pays for retro? I got the retro from dfas 8K then 25% taxes so I got 6K in my account then it goes to VA for audit am I thinking rith that VA should be paying 24,000.00 retro or is there some weird math?

1,600.00 X 20 Months = 32,000.00 - 8,000.00 from dfas = 24,000.00 owed ??????

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10 answers to this question

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Unfortunately, it does not work that way.

You wont be collecting "2012" disability pay for 2010. You will be getting 2010 pay in 2012..and no interest.

I dont know about retirement, and I dont know about CRDP, but I do know the VA pays no interest and you only get paid what you should have gotten last year, or the year before, minus what they already paid you. If you owe them money for retirement or CDRP, then that will be deducted also.

It sounds liike the 30% you have already been paid for, will also be deducted.

Edited by broncovet

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I believe you are trying to equate DFAS language and principles directly with VA language and principles. Doesn't always work.

As for my crdp is 1,600.00 a month ... That 1600/CRDP is the amount of your military retirement pay that will be "returned" to you each month under the Concurrent Retirement and Disability Pay (CRDP) program.

Now, the VA (actually, I think the easier part here) ...

Your retroactive compensation from the VA should be (using your stated 20 months, effective from 10/2010. When figuring the rate, don't forget spouse & dependents):

The 80% rate from the rate table dated 12-1-2009 x 12 months minus the amount of VA compensation you had received

plus The 80% rate from the rate table dated 12-1-2011 x 8 months minus the amount of VA compensation you had received.

As there was no COLA for CY 2011, the rate table dated 12-1-2009 remained valid for 2011.

Ok I went from 30% to 80% was informed this in sept 2012 this dates back to the effective date of dec 2010. so basically 20 months of retro pay i assume i know I know what assuming does. But if its 20 months and my retired pay is 1,600.00 and my crdp is 1,600.00 a month I have got my first payment.

Is it 1600.00 for the 20 months? how is it determined what dfas pays and va pays for retro? I got the retro from dfas 8K then 25% taxes so I got 6K in my account then it goes to VA for audit am I thinking rith that VA should be paying 24,000.00 retro or is there some weird math?

1,600.00 X 20 Months = 32,000.00 - 8,000.00 from dfas = 24,000.00 owed ??????

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I don't want to put a curse on myself but if I win my CUE I will get 100% at the 1971 rate forward to August 30, 2001 when I got 100% rate from the VA. I don't even know what the rate was in 1971, but I will take it if I get lucky. I think 100% in 1971 was probably $1200 bucks or less. This is a clear win for the VA either way it turns out because I lose 30 years of potential interest.

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With CRDP, you get both so you don't have to worry about the VA offset cutting into your retro. DFAS should audit your account to make sure you have no debts to the government (I do: severance repayment). If you don't you should receive your VA retro without a hitch.

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DFAS retro is taxable correct? what about the VA retro is it taxable?

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DFAS retro is taxable correct? Correct, it is taxable. Even though the retro may be for previous year(s), it is fully taxable in the year received.

what about the VA retro is it taxable? No, VA retroactive payments are not taxable. FWIW, any sort of VA payments (disability comp, pension, VR&E, automotive grants, home adaptations, whatever) are not taxable. The IRS consumer guide, Pub 525, Taxable and Non-Taxable Income, supports this. If you have any problem, go to 26 USC Section 104 (a)(4) http://www.law.corne...ode/text/26/104 .

DFAS retro is taxable correct? what about the VA retro is it taxable?

DFAS retro is taxable correct? what about the VA retro is it taxable?

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