VA 100% Connected vs. Military Retired pay, what to expect

[Ernie Banks]

Diagnosed with Stage IV Lung Cancer March 1, 2022. I am on the Agent orange list and have just received a 100% rating. I have and still am undergoing Immunotherpy and well as 5 competed sessions of Chemotherapy and Radiation. I am making general assumptions here. I am retired navy an prior to the 100 % rating, I was at 40% so my military retirement was 60% taxed and 40% tax free.

Now I assume my disability pay will be such that 100% of my military retirement will be tax free? Is that a correct statement? 

At one time many moons ago weren't retirees receiving disability from the VA and still collecting their military retirement too?

Am I on the right track here? Any other things I should know right off the bat?

[brokensoldier244th]

https://myarmybenefits.us.army.mil/Benefit-Library/Federal-Benefits/Concurrent-Retirement-and-Disability-Pay-(CRDP)-?serv=127#:~:text=Concurrent Retirement and Disability Pay (CRDP) allows military retirees to,a retiree's VA disability offset.

[broncovet]

According to this site, your income is taxable. 

https://www.dfas.mil/retiredmilitary/disability/payment/#:~:text=CRDP is a restoration of,No application is required.

Dont take my word for it tho, because people and their incomes are different, and consult your tax advisor instead.  If you dont have one, this would be a good time to get one, not when you get a letter from IRS that says you owe them money.  

Its possible, or even likely, to have "taxable" income and still not pay taxes.  How?  Because, when you earn "under the minimum" its taxable, but the tax is zero.  

https://www.nerdwallet.com/article/taxes/standard-deduction

Again, consult your tax advisor, but I think if you are over 65, the "minimum" is higher.  It may depend on if your wife and you are filing jointly and whether or not she is over 65 also.  

https://apps.irs.gov/app/vita/content/00/00_13_005.jsp

[toddt]

You need to apply for CRSC from your branch of the military. Once you apply and are confirmed your retired military pay will be tax free. 

[Stayfocus]

On 3/18/2023 at 11:16 AM, toddt said:

You need to apply for CRSC from your branch of the military. Once you apply and are confirmed your retired military pay will be tax free. 

I thought you get both retirement and va 100%

[brokensoldier244th]

only under certain circumstances. 

[Rattler]

As brokensoldier244th stated "only under certain circumstances. "  Most of the time you will get a choice of what you want to do. You can take your retirement pay or you can take the VA pay. The VA pay is much higher than the retirement pay. I think the exception is if you were medically discharged with x%.  Unless you were high ranking enlisted with a bunch of time in the chances are the VA will pay you higher. 

In my humble opinion if you were injured in service you should get both. The powers at be in Washington DC don't want you to make more money than they do in retirement.

Me have a member hear who specializes in MEB's etc.  His name her is NCVMFS. I would PM him because he isn't on her muck and see if he responds.

You can post this question in this forum.

https://community.hadit.com/forum/178-mebpeb-discussions/