Getting DoD pay, not VA. a problem here

Mr. Adam

Mr. Adam

PEB Forum Regular Member
PEB Forum Veteran
TDRL from USMC 29 SEP 2012 (40 DOD/ 70 VA, non-combat related) . I recieved a certified letter today explaining how I would recieve 50 percent retirement pay, which I understand is correct because 30 or 40% are both considered 50. On the paperwork they sent me, it looks as if they have already started my retirement pay which they are taxing, too. I know you dont really opt for VA or DoD pay, but I'm wondering if this is a VA pay issue, (I would like to recieve the 70 percent VA payment, as it is more money and not taxable. How do I go about getting the VA money as opposed to the DoD retirement payment. Thank you in advance.
 
Once the VA is finished processing your case with your DD-214 DFAS will automatically change your payments from DoD to VA if it's more advantageous. The DoD pay starts immediately and the VA compensation can take 30-90 days to kick-in.
 
pittpan2005 said:
Once the VA is finished processing your case with your DD-214 DFAS will automatically change your payments from DoD to VA if it's more advantageous. The DoD pay starts immediately and the VA compensation can take 30-90 days to kick-in.
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Once the VA "finalizes" your initial IDES "proposed" VA ratings, they communicate with DFAS. DFAS will then send you a notice that they will process your VA money and subtract their DFAS money from your VA award.

The DFAS letter is easy to read and understand - it contains the amount you have been receiving from DFAS, it contains the VA amount you are to receive, and it shows you down to the penny - which agency is going to pay what amount each month AND what date this new amount will be effective.

My VA kicked in on the fourth month after I discharged, and while I was waiting for the VA to finalize my IDES proposed ratings, I rec'd all of my taxable DoD retirement.

DFAS was notified by the VA of my final VA rating percentage in month three (post-discharge), I got the DFAS notification of changes, and in month four, my VA was deposited into my account. There was no glitch in my transition from one to the other - went smoothly!

Hope your does, too.

V/r,
nwlivewire
 
Thank you so much; Very straight forward answer. Will the VA pay you retroactive to your EAS? Do you get the DoD money that they took in taxes back when the VA contacts the DFAS?? Like a lump sum, or something...

-Adam
 
Mr. Adam said:
Thank you so much; Very straight forward answer. Will the VA pay you retroactive to your EAS? Do you get the DoD money that they took in taxes back when the VA contacts the DFAS?? Like a lump sum, or something...

-Adam
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VA will pay retro to your EAS. Tax issues are something you'll have to work out with DFAS and the IRS.
 
pittpan2005 said:
VA will pay retro to your EAS. Tax issues are something you'll have to work out with DFAS and the IRS.
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If your VA is greater than your DoD, you will get retro back to your EAS after your DFAS amount is subtracted from VA total.

I'm simply going to file a regular IRS tax form next year as the amount of taxes taken out during that short time I went through this situation all fell within the same tax year, and I had AD income during part of that same tax year, too.

But one thing I did do during my last 30 days on AD was to fill out a new IRS withholding form (W-4?). I claimed 6 dependants so I did not get taxed very hard on my DFAS DoD retirement for those three months until my VA kicked in. Besides, I ended having to sell back 60 days of leave (another SNAFU), and DFAS automaticlly took 25% off the top of that sell-back to the Feds - so I had already paid more than enough taxes for that year.

V/r,
nwlivewire
 
nwlivewire said:
If your VA is greater than your DoD, you will get retro back to your EAS after your DFAS amount is subtracted from VA total.

I'm simply going to file a regular IRS tax form next year as the amount of taxes taken out during that short time I went through this situation all fell within the same tax year, and I had AD income during part of that same tax year, too.

But one thing I did do during my last 30 days on AD was to fill out a new IRS withholding form (W-4?). I claimed 6 dependants so I did not get taxed very hard on my DFAS DoD retirement for those three months until my VA kicked in. Besides, I ended having to sell back 60 days of leave (another SNAFU), and DFAS automaticlly took 25% off the top of that sell-back to the Feds - so I had already paid more than enough taxes for that year.

V/r,
nwlivewire
Click to expand...

You can probably change your withholding right now with DFAS, too.
 
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