100% Concurrent Receipt And Dfas Backpay

[vaf]

I think we may have some good news coming soon, won't believe it until I see it in writing. This is a case where a 90% rated veteran is reportedly awarded 100%, retro'd back to August 2003. He's retired military, and has only been receiving a portion of his retirement pay since the law granting concurrent receipt went into effect sometime in 2004.

As a 100% disabled veteran, he would now be collecting 100% of his retirement. However, DFAS does not pay retro, from my understanding. Is he just tough outta luck for the thousands of dollars difference in concurrent receipt that he wasn't paid since 2004 when the law began?

If this is the case, it would be nice if I could deduct the loss from our income taxes!

[maxwell18]

I think we may have some good news coming soon, won't believe it until I see it in writing. This is a case where a 90% rated veteran is reportedly awarded 100%, retro'd back to August 2003. He's retired military, and has only been receiving a portion of his retirement pay since the law granting concurrent receipt went into effect sometime in 2004.

As a 100% disabled veteran, he would now be collecting 100% of his retirement. However, DFAS does not pay retro, from my understanding. Is he just tough outta luck for the thousands of dollars difference in concurrent receipt that he wasn't paid since 2004 when the law began?

If this is the case, it would be nice if I could deduct the loss from our income taxes!

I was somewhat in the same case with income taxes. There is a three year cut off anything past that is zero. I wrote the IRS and they said sorry???? I heard that they were working on the three year rule because many vets fell into that situation.

[Ricky]

vicki - DFAS and VA are currently working on back pay for those who receive retro awards from VA and were eligible for CRDP. Each case will be different so the amount would be hard to guess. Although a lot of the retired military organizations are reporting on this issue please don't spend it before you get it. We all know how VA works and if they can find a way out of it they will. As an example - the first reporting stated that DFAS and VA had worked out a plan to pay the retro and payment should start this month and be completed by years end. Last reporting I saw was some vets would received their payments around mid october but the others would have to wait until Jan 07 and all should be paid, if due, by mid summer. So you can see the ole search for the loop hole here at play already. As for the taxes. if he does not receive retro crdp then you can claim it on taxes. As stated in the other post there was a three year limit but IRS has finally figured out that there is another government agency that is more incompentent than it is - VA.... so they are currently changing their regs to allow for a longer time period since it sometimes takes VA 10 to 15 years to approve a claim.

Edited August 30, 2006 by Ricky

[Jim MAC]

vicki - DFAS and VA are currently working on back pay for those who receive retro awards from VA and were eligible for CRDP. Each case will be different so the amount would be hard to guess. Although a lot of the retired military organizations are reporting on this issue please don't spend it before you get it. We all know how VA works and if they can find a way out of it they will. As an example - the first reporting stated that DFAS and VA had worked out a plan to pay the retro and payment should start this month and be completed by years end. Last reporting I saw was some vets would received their payments around mid october but the others would have to wait until Jan 07 and all should be paid, if due, by mid summer. So you can see the ole search for the loop hole here at play already. As for the taxes. if he does not receive retro crdp then you can claim it on taxes. As stated in the other post there was a three year limit but IRS has finally figured out that there is another government agency that is more incompentent than it is - VA.... so they are currently changing their regs to allow for a longer time period since it sometimes takes VA 10 to 15 years to approve a claim.

Ricky

I called DFAS today. DFAS will be the agencey paying the back pay not the VA. I am hopeing to recevie my back pay by xmass. I am still waitning for thr govermnet to screw me over thou. I am currently paying back taxes to the IRS it was 18.000 but now I owe less then 5,000. Next time I talk to the IRS I will tell them I am haveing a computer problem and it will take 4 to 6 months to fix. How long do you think It will take the goverment to seeze myback accounts if i tried that one?

V/R

Jim

[Moe]

I got this in my DFAS newsletter the other day. I guess we would have to pay taxes on any back pay since monies received from DFAS is taxable income..

Potential Retroactive Pay Due as a Result of CRSC/CRDP

Potential retroactive pay is due for approximately 100,000 retiree accounts. The accounts affected are those entitled to Combat-Related Special Compensation (CRSC) or Concurrent Retirement and Disability Pay (CRDP) and have been awarded a retroactive increase in a Department of Veterans Affairs (DVA) rated disability. DFAS has developed procedures with the DVA to provide retirees full entitlement to both DVA compensation and CRSC or CRDP for the DVA retroactive award determination period. We have worked closely with the DVA to resolve logistical issues required to make the payments. Payments will begin to those eligible in September 2006. The method to support the large number of eligible retirees through the payment process required may take up to 12 months to complete. Until the systems are enhanced, manual calculations are being made to determine the appropriate payment amounts for those retirees entitled to additional money from DFAS. Please be patient as we work through the process with the DVA and simultaneously enhance our systems to calculate these payments automatically. In some instances, recipients may be entitled to additional compensation from the DVA. In such instances, the DVA is responsible for the payments and will notify the affected retirees. Further information will be provided as it becomes available.