Dod pay vs VA do I get to choose?

R

regular1

PEB Forum Regular Member
Registered Member
Army 14 TIS AD.
80% Dod
100% VA

BLUF currently O3E 14 years, last 2 years a O2E, some time as an E7. By my math 75% of my average 36 months would be higher than my VA amount.

My understanding is VA will cover the 100% and the excess will be paid from the dod/dfas whatever you want to call it which i will pay taxes on. Roughly $1000.

QUESTION: Do I have to elect which one I am taking or is it automatically the higher of the two?

I feel like i have seen people talking about electing dod vs va but can't get a straight answer. Thanks in advance.
 
regular1 said:
Army 14 TIS AD.
80% Dod
100% VA

BLUF currently O3E 14 years, last 2 years a O2E, some time as an E7. By my math 75% of my average 36 months would be higher than my VA amount.

My understanding is VA will cover the 100% and the excess will be paid from the dod/dfas whatever you want to call it which i will pay taxes on. Roughly $1000.

QUESTION: Do I have to elect which one I am taking or is it automatically the higher of the two?

I feel like i have seen people talking about electing dod vs va but can't get a straight answer. Thanks in advance.
Click to expand...
You already made that choice when filling out the application for VA benefits. On box 26 its states to check it if you don't want to receive VA compensation in lieu of retirement pay. If you didn't check that box (Which your MSC should have helped you to fill out and to leave blank) then you will receive VA compensation,

There is no reason to not accept VA compensation. Its tax free and if you qualify for CRSC you must accept VA compensation to get CRSC.

So bottom line: you probably already made the right choice. Its not picking between the 2 and I wish people would stop explaining it that way. If you choose to accept VA disability compensation you agree to have it offset your chapter 61 retirement. Any amount leftover from your chapter 61 retirement will be paid to you. So its not a choice between 2 options. It a choice to accept VA compensation or not.
 
Provis said:
You already made that choice when filling out the application for VA benefits. On box 26 its states to check it if you don't want to receive VA compensation in lieu of retirement pay. If you didn't check that box (Which your MSC should have helped you to fill out and to leave blank) then you will receive VA compensation,

There is no reason to not accept VA compensation. Its tax free and if you qualify for CRSC you must accept VA compensation to get CRSC.

So bottom line: you probably already made the right choice. Its not picking between the 2 and I wish people would stop explaining it that way. If you choose to accept VA disability compensation you agree to have it offset your chapter 61 retirement. Any amount leftover from your chapter 61 retirement will be paid to you. So its not a choice between 2 options. It a choice to accept VA compensation or not.
Click to expand...

Ok let's make sure I have this right. I will get the 100% VA pay and automatically get the remainder from excess portion from the dod % and only pay taxes on the difference?

Also what form is that you are referring to so i can look at block 26.
 
regular1 said:
Ok let's make sure I have this right. I will get the 100% VA pay and automatically get the remainder from excess portion from the dod % and only pay taxes on the difference?

Also what form is that you are referring to so i can look at block 26.
Click to expand...
Application for VA benefits is the form you first filled out the MSC when you get started which led to the C&P exams.

Also, not necessarily on paying taxes on the difference. It just depends on if your chapter 61 pension is taxable or not. If one or more conditions that is unfitting is found to be combat related by the PEB then your chapter 61 pension is exempt from taxes too.

Not loving your terminology of taxing the difference either. You get paid your chapter 61 pension after subtracting the VA offset. If your chapter 61 pension is greater than your total VA compensation then you will be paid the remainder of your chapter 61 pension. If your chapter 61 pension is taxable then that remainder will be taxable. If your chapter 61 pension is exempt from taxes then that remainder will be exempt from taxes.
 
Provis said:
Application for VA benefits is the form you first filled out the MSC when you get started which led to the C&P exams.

Also, not necessarily on paying taxes on the difference. It just depends on if your chapter 61 pension is taxable or not. If one or more conditions that is unfitting is found to be combat related by the PEB then your chapter 61 pension is exempt from taxes too.

Not loving your terminology of taxing the difference either. You get paid your chapter 61 pension after subtracting the VA offset. If your chapter 61 pension is greater than your total VA compensation then you will be paid the remainder of your chapter 61 pension. If your chapter 61 pension is taxable then that remainder will be taxable. If your chapter 61 pension is exempt from taxes then that remainder will be exempt from taxes.
Click to expand...

Thank you for taking the time to clarify.
 
You must log in or register to reply here.
Top