NEED HELP BEING PLACED ON TDRL and

Discussion in 'Physical Disability Compensation' started by CorporaHernandez, Jan 18, 2009.

  1. CorporaHernandez

    CorporaHernandez PEB Forum Regular Member

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    I am lost. I am a reservist in the USMCR. My unit was activated to deploy to Iraq in support of OIF. While we were doing our predeployment training I was injured pretty bad. We were doing room clearing excercises. My unit is originally from Texas and was doing all of its training in North Carolina. I was sent back to my parent command to receive treatment for my injuries. (Oh and the start date of my orders was 20040105.) I have been on active duty since then. My date to be transferred to the TDRL is scheduled to be 30 January 2009. My injuries were determined to be combat related by the PEB. I was told by my peblo that while I am on the TDRL i am to receive no less than 50 percent of my base pay. I was also told that since my disability is combat related(under conditions simulating war) my retired pay is supposed to be Tax Free. Is that true? Oh and my disability rating from the Marine Corps is 30%. How does that work? Oh I a Corporal with about 5years of total service with 4years and seven months of that being active duty time.
     
  2. Jason Perry

    Jason Perry Benevolent Leader Site Founder Staff Member PEB Forum Veteran

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    CplHernandez,

    It sounds like you have a correct understanding.

    TDRL pays at a minimum of 50% of retired base pay. If you are actually rated at less (in your case, 30%), you are paid 50%. If you get 60% or higher, that is the amount you receive (up to a maximum of 75%).

    Since your injuries are combat-related, your pay will be tax free. Also, remember to apply to the VA and for Combat Related Special Compensation.

    Best of luck with your transition and recovery from your injuries.
     
  3. CorporaHernandez

    CorporaHernandez PEB Forum Regular Member

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    Mr. Jason,

    Thank you for your answer. I already filed my VA claim. They have something where you can file while you are about to get out from your service. Its supposed to expedite the rating process. My question is, will my VA rating be the same as my Marine Corps rating? Also do I qualify for TSGLI benefits. i have read a little on the TSGLI (retroactive) benefit but it says that you have to be in Iraq or Afghan to be eligible. If thats the case that is not really fair since I was on orders in support of OIF.
     
  4. CorporaHernandez

    CorporaHernandez PEB Forum Regular Member

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    Mr. Jason,

    Since my disability is Combat Related what would the CRSC do for me since my pay is not taxed? Sorry for all the questions this stuff is kind of confusing lol
     
  5. Jason Perry

    Jason Perry Benevolent Leader Site Founder Staff Member PEB Forum Veteran

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    CRSC happens to be non-taxable, but its greater effect is that it restores some of your DoD compensation that would otherwise be offset by your VA compensation. You can get up to 2.5% times years of service restored.
     
  6. cvma544

    cvma544 PEB Forum Veteran

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    Jason,

    Can provide a citation for the tax free TDRL for Combat realted injuries?

    My PEBLO didn't mention this,

    thanks

    Stu


     
  7. Jason Perry

    Jason Perry Benevolent Leader Site Founder Staff Member PEB Forum Veteran

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    AR 635-40, Para. 4-19.,"

    k. Disability compensation excluded from gross income.

    (1) The Tax Reform Act of 1976 . Prior to the enactment of Tax Reform Act of 1976 (TRA 76) (Title 26, United States Code, Section 104, (26 USC 104)), military disability retired pay or disability severance pay was excluded from
    gross income for Federal tax purposes. (Disability retired pay is that portion of retired pay based on a person’s disability percentage rating. Disability severance pay is a lump sum payment based on years of service.) With the
    passage of TRA 76, one of two conditions listed below must be satisfied for military disability retired or severance pay to be exempt from Federal taxation.

    (a) On 24 September 1975, the individual was a member (including RC membership) of the armed forces of any country, the National Oceanic and Atmospheric Administration (NOAA and formerly the Coast and Geodetic Survey), the U.S. Public Health Service (USPHS), or was under binding written agreement to become such a member. (Soldiers retired or separated by reason of disability on or before the cited date are not affected by TRA 76.)

    (b) The disability pay is awarded by reason of a combat-related injury. Within the meaning of 26 USC 104, combat-related injuries cover those disabilities attributable to the special dangers associated with armed conflict or the
    preparation or training for armed conflict.

    1. A Soldier may be performing extrahazardous service even if not directly engaged in combat. Extrahazardous service includes but is not limited to the following activities: Aerial flight duty, parachute duty, demolition duty,
    experimental stress duty, and diving duty.
    2. Conditions simulating war include, but are not limited to, the following activities: performance of tactical exercises such as the squad or platoon in the assault; airborne operations; leadership reaction courses; grenade and live fire weapons practice; bayonet training; hand-to-hand combat training; repelling; and negotiation of combat confidence and obstacle courses.
    3. Unlike the provisions for Civil Service retention preference (5 USC 3501), the injury resulting from an instrumentality of war need not have occurred during a period of war as defined by law.
    (2) Entries on DA Form 199. The entries made on DA Form 199, blocks 10B and 10C, concern disability compensation excludable from gross income.
    (a) If the PEB can establish the fact (from available records) that the Soldier was or was not a member or obligated to become a member of one of the designated organizations on 24 September 1975, the board will make the proper entry in block 10B. If such a decision cannot be made, the PEB will enter a statement after the last entry in block 8 to reflect that fact and leave block 10B blank.
    (b) In block 10C, the board will record its determination of whether the injury was combat-related as defined by 26 USC 104."

    Note that this is a good explanation, but the authority comes from the underlying statutes.
     
  8. cvma544

    cvma544 PEB Forum Veteran

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    Thanks Jason,

    My PEBLO never mentioned it.

    Stu
     

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