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TDIU taken away because of long term disability insurance.

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freedomisntfree

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My brother  was 90% and awarded 100% IU P&T two years ago. He was awarded SSDI about a year and half ago. From the day he stopped working he was put on long term disability insurance an entitlement he receives because he paid many years for in case he would not be able to work or if he was hurt on the job.

He received notice they was taking his IU because he was over the threshold for taxable income.  I  was not aware long term disability insurance could be included in the income threshold. It is taxable income but it is not a working income. He is too broke to work. He just recovered from another knee surgery. 

Is their anyone who can assist with this.

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Now it makes sense.  Two computers collided.

Basically, SSI says he had income, and he stated he did not on the form.  Which are both correct.

The VA probably should have another question regards that type of income on the form.

Now we are way above my pay grade.

I guess I would have him call Peggy and ask what to do...

FWIW,

Hamslice

 

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  • HadIt.com Elder

I agree with you John999, what I don't understand is how can they take away veterans IU just because he has the long term disability insurance? thats not an income that's protection?

I mean we got to have something going for us...not so much  extra-income be peace of mind

We set aside a little each month out of my VA Comp and have been for the last 12 /15 years  this is my 17th year on TDIU P&T and 4 years with 2 SMC's. we are trying to save  so when if I make it to the 20 year mark we always wanted to  go to Rome and see some of the Biblical sights over there.

  We been to Athens Greece to the Pathathon  <ms....its a weary feeling  to be inside that and touch those large pillows, it sits high on a Hill as this was their fortress to over look the enemy.  I find all this educational and Interesting that things that truly happen back in the historical Years of long ago. 

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Rocky01, you need to write up a letter explaining the income is from LTD and that you are not working and take it to a VSO ASAP. If you only filled out the 4140 with no explanation of the income, they will reduce your IU. Thank you for your service!!

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  • HadIt.com Elder

No I don't think they can take it away for the reason you stated above Long term disability insurance should not be counted as Income. IF HE HAD THAT BEFORE GETTING THE IU? 

Because he is Rated Total Permanent  OR P&T by the VA, His SSD Also should not be counted as an income.

However because this L.T.D.I. is consider a Taxable income that is above the minimum income threshold And is reported to the IRS that may be what breaks the camel Back my friend?

Also if he has over a certain amount of savings in a savings account this too is reported to the IRS as taxable income. (jmo)

His TDIU P&T is not Temporary. 

Here is a link from cck attorney's

https://cck-law.com/news/tdiu-permanent/

However I am not 100% sure on this?,  with the VA we can't under estimate them!I

I never had this question ask before and maybe some of the other elders can chime in,--=  broncovet/Ms Berta Hamslice Vetquest, Vync, John999  jbasser,

Edited by Buck52
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I agree with Buck.  Veterans compensation is "not" needs based.  Senator McCain got VA compensation as have other high profile people.  Can you scan the letter that says his compensation (TDIU) is being removed due to long term disability insurance??

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Unfortunately there are two types of Long term disability insurance.  Pre tax and after tax.  If you are working and read this make sure that you get the after tax insurance.  Pre tax LTD is taxable where after tax LTD is not taxable.  It looks like he may lose this one.  When I applied for TDIU they attempted to say my LTD plan superseded my rights to TDIU but mine is not taxable.

Edited by vetquest
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