Rating back need some guidance.

K

kiska

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Okay will try to keep short....
50 yrs old, over 20 yrs but haven't received letter 14yrs reserves 6+ active duty, rank 03
Rating DOD 0% but unfit, VA 100% offering severance of 19 yrs. My zero percent has V4 code.
JAG says appeal because VA gave me 30% for PTSD/MDD. I originally went for hip injury, I wasn't afforded the opportunity to put other conditions as most people were able to do.
My question is since VA said zero percent is the severance still considered non taxable. There is a sentence saying in the documents that concern me which states "you may qualify for a tax break if you are awarded a VA disability rating for the same condition that resulted in your medical discharge". So is zero considered a percentage?
Thanks for your help.
 
Zero is a percentage, but whether it meets the requirement is a question for the heavy hitters of this forum.

Inpain2424
 
Whats interesting is that there are three areas describing my right hip issue one says ten percent and the other two say zero and wouldn't you know they chose zero as their answer. This is so messed up. None of their responses totally match up. In their detailed explanation recognize my left knee injury, in their response on 3497 says no medical diagnosis but is clearly written so wouldn't even award a percentage for it. This is so frustrating, all the errors I have noticed.
 
Just closing up this thread....I spoke to DFAS and even though I was rated 0% and unfit my severance is still considered non-taxable because it is a V4 code. Therefore, I can collect my VA with my severance. So long story short, I am going to accept the severance and move out. Good luck to everyone.
 
The way I read things, 0% is better than 10%. 10% pay rate is has to be deducted from your VA pay until the severance is paid back, 0% shouldn't have any deductions.
 
V4 would make it not subject to recoupment by the Va but it could still be taxable if not combat related.

Mike
 
My V4 code was combat related. I am fortunate that I am able to receive the severance non-taxable and still get my VA percentage.
 
kiska said:
My V4 code was combat related. I am fortunate that I am able to receive the severance non-taxable and still get my VA percentage.
Click to expand...

Will you be able to get your NG/Reserve retirement at age 60 if you take the severance?

You wrote you have over 20 total, so I am assuming you have a 20-year letter?

nwlivewire
 
It's an either/or thing, severance vs. a Reserve retirement.

Wow, I just saw that kiska had 20 years in. That changes things completely in my eyes.....why would you take a severance instead of a NG/Reserve retirement? Sure, the severance is good money up front, but you're giving up a lot to get it. Base privileges are just the start......over time, the money you'd get in retirement is going to far outweigh the money you would get from the severance.
 
I will forego my retirement by taking the severance. I just went over twenty years this past month. The severance will equal the same payment of being medically retired at 30% for about 14 yrs. It is non-taxable. I will be able to collect social security at that time. I think I can invest it and get a greater return in the end. Plus, if I were to die early my children would have some money but if I try to fight it they will get nothing. I am betting the Tricare will be changed within the next three years and not for the better. For me taking the severance seems the best bet.
 
Chuckie said:
It's an either/or thing, severance vs. a Reserve retirement.

Wow, I just saw that kiska had 20 years in. That changes things completely in my eyes.....why would you take a severance instead of a NG/Reserve retirement? Sure, the severance is good money up front, but you're giving up a lot to get it. Base privileges are just the start......over time, the money you'd get in retirement is going to far outweigh the money you would get from the severance.
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I hear what your saying and I have been struggling with this but the boards are doing screwy things and I just don't want to chance it. Where I will reside the nearest base is 5 hours away. And even if I outlive the 14yrs I will still have VA, SS and my investments. Financially, I will be okay.
 
What are your V1 and V3 codes? V4 by itself is not combat related.

Mike
 
maparker said:
What are your V1 and V3 codes? V4 by itself is not combat related.

Mike
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Yes, your right Mike. V4 states combat zone but still qualifies for non-taxable severance from what I have been told and read.
 
It qualifies for exemption of recoupment by the VA but combat zone alone is still taxable unless the unfitting condition is also combat related.

What is your V1,V2 findings?

Mike
 
yeah zero is rating. I can't believe you got rated 100% from the VA but zero from the DOD
 
By foregoing retirement you are giving up what could be a couple of million dollars.
 
maparker said:
It qualifies for exemption of recoupment by the VA but combat zone alone is still taxable unless the unfitting condition is also combat related.

What is your V1,V2 findings?

Mike
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I have nothing for V1 or V2.
 
Okay everyone here is the latest. I went and signed saying I concurred and after signing just as I was heading out my peblo calls me back and says "I didn't know you have reserve time, therefore what their offering isn't valid". Therefore, since you signed you have till tomorrow to decide if you want to appeal or accept 81k instead of the 242k that was initially offered. What the heck! How can this go through numerous people and this error not caught? Went to the Veterans center and they say there is no recourse I can do and even though I have 20 yearsof continuous service that I can't put in a retirement packet. So basically I am screwed. JAG won't see till tomorrow. I am filing an IG complaint and filing a Congressional this week. I am contacting my senator and going to talk with the local news. It was terrible to hear from the Veterans rep here in Georgia that numerous soldiers agree to the severance only to be told after their discharged that the amount they agreed to isn't the one they receive. He did say that mine was one of the worse, almost 150k difference.
 
It didn't go through numerous people. The PEBLO inputs your length of service and it spits out a calculation. Puts in total years or reserve years by accident, the form will be incorrect. When DFAS does the payment I am sure they have at least one level of review to make sure the correct length of service calculation is used, but they get things wrong sometimes. I would recommend doing your own calculations based on FMR volume 7B chapter 35, they may not be counting in your inactive points.

10 U.S.C. 1213 says that if you accept disability separation you can't get paid for that same period of service unless it was already due to you at separation or a claim is allowed under law. I don't know exactly what those two qualifiers mean, but you certainly are eligible to turn down separation pay and elect reserve retirement if you have 20 good years.
 
scoutCC said:
It didn't go through numerous people. The PEBLO inputs your length of service and it spits out a calculation. Puts in total years or reserve years by accident, the form will be incorrect. When DFAS does the payment I am sure they have at least one level of review to make sure the correct length of service calculation is used, but they get things wrong sometimes. I would recommend doing your own calculations based on FMR volume 7B chapter 35, they may not be counting in your inactive points.

10 U.S.C. 1213 says that if you accept disability separation you can't get paid for that same period of service unless it was already due to you at separation or a claim is allowed under law. I don't know exactly what those two qualifiers mean, but you certainly are eligible to turn down separation pay and elect reserve retirement if you have 20 good years.
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Thank you for your input. I disagree with your first thought. It did go through 10-12 people at the IPEB for checks. It was signed by the COL who sits on the board. My whole frustration is that after being checked by all these individuals it is still wrong. I would not have known the real damage until after I discharged. In my mind it is a bait and switch. And if at least goes to the incompetence within the system. People base their decisions on what is given to them. It is unfair to the individual who is making this life decision to be given intentional erroneous information. Off by a few thousand I can understand, off by over 150k there is no excuse.
 
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