I just received my results today. My estimated retired pay for DoD is TDRL $1991.50 and for VA it is $1936.00 including dependents. My Army compensation is slightly higher than the VA. My question is will I get taxed on the TDRL or can I accept the VA comp even if it is slightly lower than the DoD since the VA is not taxable? I am confused on how the taxes work if my DoD rating is higher than the VA. Also I do not qualify for CRSC
TDRL, VA comp? please help
- Thread starter hallad1974
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Jason Perry
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You can opt for either. So, take the VA pay with its non-taxable character, which will net you more money.
Thanks Jason but they are offering me TDRL so by accepting the VA comp will I receive tricare and other benefits for my family?
Jason Perry
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Yes, you keep all retiree benefits. The only thing that you do is opt to waive military pay in lieu of VA pay. Tri-Care, commissary, PX, etc. are still yours.
Jason Perry
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Mike,
Right, it happens automatically that DFAS and VA share information and calculate what is most advantageous to you and pays accordingly. So, "opt" is really a matter of semantics (though, one can affirmatively choose one source of pay over the other; the only reason I can think of to choose what appears to be the less favorable over the other would be in very specific cases where there are alimony or other family law issues that may make it actually more favorable to receive one source over the other. Those cases, though, really need thorough legal advice as there may be other consequences and/or the election may expose one to challenges or contempt motions).
Right, it happens automatically that DFAS and VA share information and calculate what is most advantageous to you and pays accordingly. So, "opt" is really a matter of semantics (though, one can affirmatively choose one source of pay over the other; the only reason I can think of to choose what appears to be the less favorable over the other would be in very specific cases where there are alimony or other family law issues that may make it actually more favorable to receive one source over the other. Those cases, though, really need thorough legal advice as there may be other consequences and/or the election may expose one to challenges or contempt motions).