va recoupment calculations

ramonica1

ramonica1

PEB Forum Regular Member
Registered Member
How will the VA recoup my severance pay because I can use this to pay up on some major debts
 
You are recouped monthly (subtracted from your C&P). They take back the same percentage each month as what you receive.

Example is C&P award is $1000, unfitting condition you received severance pay for was 10%, the VA recoups $100 per month (10% of $1000). You get $900 per month.
 
GSFowler, Is that 100%, I spoke to a VA rep this past week and he said to expect that they would take all of the VA back to pay back the "loan"**Severance**

I am in similar boat at 20% and severance would be large amount but unfitting condition is the 20%, so my VA is 90% and as I read your post they would only recoup each month at 20% rate? and finally I am V code of V4 - Yes does that mean I would not have to pay taxes and also not have the VA recoup the amount???

Thanks
 
the recoupment is at the amount of the unfitting conditions until the severance is paid back in full. If the unfit conditions was caused as a direct result of combat, then they do not recoup the money and you SHOULD get the tax money back if they take it.
 
The VA must still pay you what you are due from the VA based on non unfitting conditions. If the amount of VA comp is the same with and without the unfitting condition factored in, there is no recoupment of the severance pay. The amount recouped is the amount of VA with unfitting condition(s) factored in minus the amount of VA compensation without Unfitting condition(s) factored in.

Further, the severance is still recovered if the condition is combat related. What prevents the collection of severance is if the condition incurred in a combat zone or during a combat related operation. Combat related is not the same as combat related operation. If one is shot on a rifle range in conus that is combat related and the severance is still subject to recoupment. If one busted their knee playing basketball in the gym in Iraq, that incurred in a combat zone and the severance is not recouped.

Mike
 
Last edited:
Mike, TSgt Twitch,
Thanks for the help, I think I am tracking better on this. Now I am just waiting on the VA Reconsideration since I won the FPEB back in Nov 2013. I was hoping by now to have resolution, however, thats what hoping gets you! A whole lot of nothing.

Have a great Army/Navy/Airforce/Marine/Coastguard Day!

Hoah!
 
Thanks for information. I have an issue now with the taxes portion. I sent them my sin clair letter along with VA award letter and discharge papers with a reply that the codes are not matching and I want be eligible for taxes back. What am I to do? I know they were different that's why I filed my case with the pdbr due to that. I was tdrl from navy with a 60% rating for kidney failure in which stated the cause of failure was due to Lupus. So they later separated me with 10% due to kidneys improve but not fit to stay active. Wtbs they weren't concern about the lupus at that time but the VA gave me the right code 6350 with a 100% rating which covers the lupus and it relations to other things as organ failures,vision etc. So until the pdbr makes their decision is this severance to be recoup since its not the same code.# so confused and frustrated
 
@ramonica1 the amount of recoupment will depend on your combined ratings. With the 100% rating for Lupus and 10% severance for kidney failure, I am pretty confident nothing will be recouped. By removing the 10% for kidney failure from your combined rating it would still be 100%.

Am I correct in reading that you are requesting the PDBR to find the Lupus unfitting? If this is the case and they do, you should become medically retired and then you would have to pay the DoD back severance.
 
So does that mean I can't get the taxes back because the codes are different. So do I need to file taxes I receive ssd so I'm not gainful employed to file taxes.
 
You do not have to be employed to file taxes and on SSDI you should be filing taxes anyway (SSDI is taxable income, with special rules).

If you were separated with severance from the Navy this calendar year, you can get a refund from DFAS, if you received the severance prior to 1 Jan 2014 you must request the taxes back from the IRS

Here is a thread that describes how to do it: http://www.ar15.com/mobile/topic.html?b=1&f=77&t=826508
 
:( VA Waiver IRS Recoupment. How can I do this? Does DFAS give you any document to suppot your VA Wavier. I am entitled to 9 months back pay of tax free VA Waiver @ $3,000 (100% VA). Has anyone gone through this IRS and DFAS process to recoupe you VA Waiver Tax Refund? Any insight would be very helpful.
 

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gsfowler said:
You do not have to be employed to file taxes and on SSDI you should be filing taxes anyway (SSDI is taxable income, with special rules).

If you were separated with severance from the Navy this calendar year, you can get a refund from DFAS, if you received the severance prior to 1 Jan 2014 you must request the taxes back from the IRS

Here is a thread that describes how to do it: http://www.ar15.com/mobile/topic.html?b=1&f=77&t=826508
Click to expand...
 
@fowler i requested taxes back they sent me a denial letter stating that my VA code and separation codes don't match so they claim it is taxable. Wtbs is this severance pay be recouped or not.
 
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