Anyone know the VA Codes on PEB Unfit Memo?

Keep in mind that the PEB is a different board that the CRSC board, and V codes or "combat related" decisions from the PEB don't guarantee a CRSC decision one way or the other. That said, the decisions by the PEB can be used to support a CRSC claim, but don't guarantee it.
 
v8colorado said:
On my friends DA 199 V4 says severance pay WAS awarded.?? I'm confused now. I have all yes.
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"Yes" is good. V-1 or V3 "yes" means retirement is tax-free. V-4 "yes" means that if you are separated that separation pay is tax-free and you don't have to pay it back (through VA disability pay).

Where is the confusion?
 
So if I have a yes in V1&3 in some of my conditions but not all and have a proposed rating of 70% dod that some or all of my retirement will be tax free?
 
UniformedSoldier said:
So if I have a yes in V1&3 in some of my conditions but not all and have a proposed rating of 70% dod that some or all of my retirement will be tax free?
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The only the conditions rated as combat-related will be tax free. You can use the VA math to figure out the total. If the VA payment is higher than the retirement pay, it woun't matter. Everything would be tax-free. The PEB's decision will help with justifying combat related special pay (from the service when you separate)
 
DoDFMR 7b, Chapter 24 ( http://comptroller.defense.gov/fmr/07b/07b_24.pdf )



2403 RETIRED PAY NOT SUBJECT TO FITW
240301. The gross retired pay of a member is not subject to FITW [Federal Income Tax Withholding] if the member’s retired pay is computed only on the basis of percentage of disability and the member is on the temporary or permanent disability retired lists, if:
A. On or before September 24, 1975, the member was entitled to receive retired pay computed on the basis of percentage of disability (26 United States Code (U.S.C.), subparagraph 104(a)(4) and 104(b)(2)(A));
B. On September 24, 1975, he or she was a member of the Armed Forces (or Reserve Component thereof) or under a binding written commitment to become such a member (26 U.S.C. 104(a)(4) and 104(b)(2)(B)); or
C. The member receives disability retired pay because of a combat-related injury. The term “combat-related injury” means personal injury or sickness incurred as a direct result of armed conflict, or while engaged in extra hazardous service, or under conditions simulating war, or caused by an instrument of war.
 
Jason Perry said:
DoDFMR 7b, Chapter 24 ( http://comptroller.defense.gov/fmr/07b/07b_24.pdf )



2403 RETIRED PAY NOT SUBJECT TO FITW
240301. The gross retired pay of a member is not subject to FITW [Federal Income Tax Withholding] if the member’s retired pay is computed only on the basis of percentage of disability and the member is on the temporary or permanent disability retired lists, if:
A. On or before September 24, 1975, the member was entitled to receive retired pay computed on the basis of percentage of disability (26 United States Code (U.S.C.), subparagraph 104(a)(4) and 104(b)(2)(A));
B. On September 24, 1975, he or she was a member of the Armed Forces (or Reserve Component thereof) or under a binding written commitment to become such a member (26 U.S.C. 104(a)(4) and 104(b)(2)(B)); or
C. The member receives disability retired pay because of a combat-related injury. The term “combat-related injury” means personal injury or sickness incurred as a direct result of armed conflict, or while engaged in extra hazardous service, or under conditions simulating war, or caused by an instrument of war.
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Jason, This is the above referred PDF. It is the typing instruction for section V of the new 199. It seems to imply that a "V1, V2... No" = combat related, but it is just the typical typing instruction. As you know, "Yes" is good.
 

Attachments

Well in section V of my 199 it states what Jason quoted in bullet C. So is it safe to assume my retirement would be tax free? My retirement is higher than va in my case
 
UniformedSoldier said:
Well in section V of my 199 it states what Jason quoted in bullet C. So is it safe to assume my retirement would be tax free? My retirement is higher than va in my case
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Looks like it. I had read in the past that it was proportional. This is good news.
 
A "yes" next to V4 means the disability severance pay was awarded for disability incurred in a combat zone or incurred while performing combat-related operations. A Soldier only receives a V4 "yes" when that injury receives a disability rating of 0%, 10%, or 20% (in other words, a rating of <30%).
 
eagleone said:
There are several benifits: V1/V3 = Tax free retirement and Combat Related Special Pay. V4= No requirement to pay back separation pay.

There is no increase in percentages or change discharge.
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I have combat related injuries. I have only 3.5 yrs of service and rated at 40% from army (around $750) and VA at 60% ($1025).
Can the combat related injury help me in anyway?
 
The main thing that the combat relation combat relation can do is afford you a better chance at qualifying for CRSC. But, you have to be out and have to apply for it, because it is a different board (not PEB). If awarded CRSC, the payment is designed to remove the offset and is tax free. So, in short, combat related injuries can net you a bit more money in the end.
 
usafaviator said:
The main thing that the combat relation combat relation can do is afford you a better chance at qualifying for CRSC. But, you have to be out and have to apply for it, because it is a different board (not PEB). If awarded CRSC, the payment is designed to remove the offset and is tax free. So, in short, combat related injuries can net you a bit more money in the end.
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In my case the extra money you talking about (CRSC) would be my retirement pay...Right? i.e.,( 2.5%*base pay* no of yrs)

Its not actually the 40 % disability ($750).....

Please correct me AVIATOR...if I am wrong !!!
 
Correct. Since you are drawing the VA comp now (750.00) because it is higher than your DoD retirement pay, if you qualify for CRSC it will restore (up to) the amount of your DoD retirement pay. Essentially, if you qualify for CRSC, you will end up getting the 750 + and about whatever your DoD pay is (rather than just one of the other). There are calculators and other factors, but (overall) it means more tax free money in your pocket and is a good thing. It is kind of a confusing concept, but the best thing to do would be apply- the worst they can say is no, and then you can still request a reconsideration.
 
usafaviator said:
Ok, I just reread this, and you are correct. Since you are drawing the VA comp now (750.00) because it is higher than your DoD retirement pay, if you qualify for CRSC it will restore (up to) the amount of your DoD retirement pay. Essentially, if you qualify for CRSC, you will end up getting the 750 + and about whatever your DoD pay is (rather than just one of the other). There are calculators and other factors, but (overall) it means more tax free money in your pocket and is a good thing.
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Its confusing to me AVIATOR...My VA is actually $1025 tax free....

If I do qualify for CRSC.... Would i get $ 1025 + the DoD RETIREMENT MONEY?

Because if they add $750 + the DoD RETIREMENT MONEY... It will still be less than my VA money, as I have only 3.5 yrs of service....
 
You will get your current VA money + DoD retirement money (+/-). It will be more money than you are getting now. Sorry to confuse. If you qualify for CRSC, you will get your VA 1025 + whatever your DoD retirement is. Remember, you will always get what is highest (most beneficial) to the sm.
 
Thanks a lott Aviator for your time.... Its very clear to me now !!! Will keep you updated on how it goes !!!
 
So basically a V-3 yes is only good if I got over 30% since I didnt that V-3 code means nothing for me?
 
Just to update if anyone is still reading this thread but I had the V-3 code as yes in my unfit memo and when I signed my 199 today I was told that and it read that "the disability did result from a combat related injury under the provisions of 26 USC 104 or 10 USC 10216." Which I am being told 100% that it will be non taxable severance and she believes as well as the VA Rep we went to with this questions that it will also not be recouped from the VA. So should be getting out with a pretty good penny and not have to worry about it taking away from my money in the VA claims part of it as well.
 
Good information for historical purposes...

Best Wishes!
 
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