Will I Pay Taxes?

[jayyrzx]

Good Evening,

So about two weeks ago I got my findings. 20% DOD and 80% VA. So yes I get the severance pay but there is a peculiar thing about my findings that I had a question on.

So first, one of my conditions that was PEB recommended was found service connected and rated 10% by the VA.

Second, my other condition that was PEB recommended was rated 10% as well for the VA. HOWEVER, this was not NOT considered service connected and was only rated by the VA to give to the PEB. this is what it stated on my VA document. "Note to PEB: The referred condition of instability, right ankle is denied for VA purposes. For DOD purposes ONLY the condition warrants a 10% evaluation."

My question is, since this 10% value wasn't technically part of my 80% VA finding, will I still have the 20% taken out of my VA payments or just the 10% from the first condition to pay back my separation pay. My lawyer is the one that caught this and said it wouldn't hurt to try and question them if they try to take 20% from my VA. Seeing what you ladies and gents think.

*Bonus Question: My new EAS is now December 15th and was just wondering about how long it takes to get your severance pay. I already have a rough idea for VA payments.

Thank You

 

[RonG]

Hello @jayyrzx

Some have reported payment of severance at around 30 days. Others have waited longer.

M21-1, Part III, Subpart v, Chapter 4, Section B - Recoupment of Separation Benefits
--->LINK

III.v.4.B.3.b. General Policies Regarding Withholdings to Recoup Disability Severance Pay

Generally, if a Veteran received disability severance pay, VA must withhold from his/her monthly compensation an amount equal to the monthly compensation payable for the disability(ies) for which the Veteran received disability severance pay. VA continues to withhold this amount until it has recouped the amount specified in M21-1, Part III, Subpart v, 4.B.2.d. Important: The monthly withholding may never exceed the monthly amount of compensation payable based on the initial, compensable rating, as defined in M21-1, Part III, Subpart v, 4.B.3.c, that VA assigns the severance-pay disability(ies). If a Veteran has multiple, severance-pay disabilities, each rated 0-percent disabling, and VA assigns a 10-percent disability rating to them under 38 CFR 3.324, no withholding is necessary for these disabilities until VA assigns a compensable rating to one or more of them, individually. Withhold the additional benefits payable because of application of the bilateral factor if the initial, compensable rating included application of the bilateral factor, and entitlement to the bilateral factor was based exclusively on severance-pay disabilities.

Ron

 

[jayyrzx]

Thank you. By that verbiage above it seems like the answer is no, they will not take the second 10% out of my VA payments correct?

 

[RonG]

Thank you. By that verbiage above it seems like the answer is no, they will not take the second 10% out of my VA payments correct?

That is my interpretation too.

You said,
"So first, one of my conditions that was PEB recommended was found service connected and rated 10% by the VA.
Second, my other condition that was PEB recommended was rated 10% as well for the VA. HOWEVER, this was not NOT considered service connected and was only rated by the VA to give to the PEB. this is what it stated on my VA document. "Note to PEB: The referred condition of instability, right ankle is denied for VA purposes. For DOD purposes ONLY the condition warrants a 10% evaluation."

It is my understand from your post that you are NOT receiving VA compensation for one of the 10% ratings. In other words, that 10% is NOT part of the combined 100% rating by the VA.

Ron