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Q778: Why did the VA recoup my military compensation for the 16 years of military service? I was given a disability/medical discharge. The VA took this money before they would give me VA compensation.
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A1: If you are less than 50% SC then the VA is required to take it from your retirement and pay you tax free compensation. Whatever is left of your retirement is taxed and you get the rest. If your disabilities are combat related then you can file for Combat Related Special Compensation. (CRSC). If the disability is deemed combat related then under CRSC DFAS will pay that back to you. (DS) 10/13/21
A2: This is vague; if you got severance pay, they would need to recoup the pay before you get compensation. I was given the choice of severance or retirement pay. I took retirement because they do not take anything out. Each case is different and rules apply differently. (MR) 10/13/21