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FAQ Archive
Q6: Vietnam vet, 1967/68 Recon. I have requested my C File from the VA over 6 months ago. Made several phone calls and was told they are working on it? Anyway to expedite the delivery of this?
A1: The VA is probably just now reading your request. The only thing the VA does at super speed is if you owe them money. Hang in there, your C-file will eventually come. (PD) 3/25/2016
A2: I know that this might seem like a blow off, but, I do disability compensation claims as an Accredited Agent. It has taken me as long as 2 years to get C-files when I have submitted the appropriate 3288 forms. If I were you, I would also request copies of my Service Records, and records from hospitals and BAS's where I was treated. Most people may not realize that medical records from the military are retired by the facility and not part of the veteran's Service Medical Records. There are some progress notes that may be in your SMR but the others may be retired by the medical facility. You should contact the National Archives at St. Louis and let them know the name of the facility (hospital, BAS,etc) approximate dates, the possible diagnosis that you were treated in the military hospitals BAS. That often helps. (CP) 3/25/2016
A3: Contact your congressman and you should get some information within a month and it is too bad that the VA forces us veterans to go to our congressional reps instead of getting it done within the VA. Every claim or increase took about 2 1/2 years to get it done and that is uncalled for. (JRM) 4/16/2016
Q7: I currently receive VA comp from service connected disabilities while serving in a combat zone in Afghanistan. Do I claim these payments while filing my yearly taxes? Also, while exiting the service from Ft. Riley in September 2014 they messed up my calculations on separation pay by figuring at E4 pay versus E5 pay. I had to submit paperwork showing that I wasn't paid correctly and this didn't get settled until 2015. How do I get whatever paperwork is needed to submit the difference not initially awarded to submit it for tax purposes as well?
A1: Disability Compensation paid by the VA is subject to taxation. The next thing is that to straighten out your pay is to get in touch with DFAS. I would also suggest that you request reconsideration for your disability and request a medical retirement vs severance pay. This would allow for you to receive a number of benefits such as Tri-Care, retirement pay and if you have a VA rating of more than 50% concurrent receipt of both the VA disability compensation and military retirement. You will have to request that your disabilities for which you were separated should have been rated at higher than 30% that the DoD appears to have assigned. You should also appeal for the other disabilities that may not have been considered in the original PEB. Your claim is actually more simple than it sounds in writing. (CP) 3/27/2016
A2: Do not include disability benefits you receive from the U.S. Department of Veterans Affairs (VA) in your gross income. In particular some of the payments which are considered disability benefits include: Disability compensation and pension payments for disabilities paid either to veterans or their families, Grants for homes designed for wheelchair living, Grants for motor vehicles for veterans who lost their sight or the use of their limbs, or Benefits under a dependent-care assistance program.
Rehabilitative Program Payments
VA payments to hospital patients and resident veterans for their services under the VA's therapeutic or rehabilitative programs are no longer included in income. For more information, please see IRS Revenue Ruling 2007-198.
This is straight from the IRS web site. https://www.irs.gov/Individuals/Information-for-Veterans-with-Disabilities (RJ) 3/28/2016
A3: Disability compensation paid by the VA is NOT taxable, reportable, or assignable. You don't have to report it on your taxes as income. As for the error in your separation pay, you should contact DFAS. They are the ones that can correct the issue and they have the records of the transaction. (AP) 3/29/2016
A4: I apologize for forgetting to put the word NOT in the statement Disability Compensation paid by the VA is NOT subject to taxation. I guess my fingers didn't keep up with my hands. (CP) 4/23/2016
A5: I agree with answer 3...disability compensation paid is not taxable in any way and you will not receive a 1099 or any other tax form for this payment. DFAS is the only ones who can help with the second problem and you should contact them asap. (LG) 5/21/2016
