The "option" is whether one elects to waive retired pay in order to receive VA compensation. VA comp cannot be paid to a retiree unless he/she agrees to waive retired pay dollar for dollar in the amount of VA compensation received. I can think of no situation where it would be wise to decline VA compensation. See next paragraph.You can choose the 50% from the Army and the other 30% from the VA but the smartest thing to do is just go with the 80% from VA because it will be Tax free. You will only receive both if it was a combat related injury.
1. VA compensation is never taxed.Ron, or anyone in my situation,
So I receive military Chapter 61 disability pay in addition to my VA pay (CRDP, over 20 AD years). I receive 75% of my base pay. Is this taxed? Looking at my LES, in one column it shows “Taxable income” of $xxxx. I’m showing several dependents for tax exemptions claimed but no FITW is withheld, although some of it is in the “taxable income” remark.
It’s been that way since CRDP took effect. So is both VA and Chapter 61 disability pay not taxed?
Not to hijack this post but it could be helpful to the OP as well.
The purpose of CRSC is to replace some or all of waived retired pay (called VA offset).Had my appointment with retirement services today and was inform I will get VA pay and crsc but no army retirement even tho my disability is combat related. Does this sound right to everyone?