Question

If I get monthly VA service-connected disability compensation, can I still get my 2013 taxed severance pay back without it effecting my monthly VA Disability check?

Forum|Forum|7 years ago
June 1, 2019
1 reply
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If I get a monthly service-connected disability compensation from the Department of Veterans Affairs (80%), can I still get my taxed severance pay back (roughly$ 5,000 to Arkansas and $20,000 to Federal)? Without it effecting my monthly VA Disability pension? It was taxed in 2013.

Carl11_2

Employee

Yes you can. The only thing that affects your disability pay, is your disability status - which I understand is presently 80%.

For the money you're talking about, are you referring to money paid you by DFAS which you paid taxes on, that you later learned via a letter from the VA could be treated as "tax exempt retroactive" VA pay for tax purposes?

G

greeneyedcrazypeAuthor

Well, I was told during M.E.B. that if I wanted to receive a full VA disability check that I would need to pay taxes on my severance pay. When I got out I went to a local CPA and had it taxed.