I was recently found Unfit with 20% DoD and 60% VA. I've yet to review my findings but unfitting condition is likely intervertebral disc L5-S1.Since time is of the essence I'm considering just taking the severance and moving on with my life. That being said, before I make such a decision I have two questions. 1) If my injury occurred whilst serving in a "combat zone" but not combat related, would I still have to pay back the severance? 2) If the first question doesn't apply, Does severance have to be paid back in full before I start receiving monthly VA compensation or do they deduct a certain percentage out of each compensation payment until paid off?
Severance Pay Combat Zone
- Thread starter EOTJCL
- Start date
Depending on how it is written it should say if it is considered "Combat Related" injury which will make it tax free. If they don't deem it "combat related" then they will take the percentage given for that unfitting injury back each month. So for your instance it would be 20% out of your VA check each month. Which would be around $200 a month out of the VA check.
If not combat related, the severance will be deducted from the C&P award at the same scheduler rate as the VA pays.
http://www.benefits.va.gov/compensation/resources_comp01.asp
60% with spouse pays $1159.27 per month, subtract the 20% rating ($264.02) and you would get $895.25
If you are rated by the VA for the same condition that you are getting severance for, then DFAS will refund the taxes withheld from the severance.