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Military disability finance question?
So im going to make this as quick as possible...
so if i were to get out of the army with a service related disability and get severance pay at 23,000 that severance pay is taxed. Even though I receive it from injuries which by law it is NOT supposed to be taxed but they greedily tax it because technically its doesnt go under none taxable until after a va rates the injury which then makes it harder for anyone to get it back... FUNNY how they get off on the uninformed . So lets say they tax it at 28% and tell me that i need a va rating
before it falls under non taxable. Now since i am way in head of the herd with this i have not even got a severance pay rating so is there a way that i could get a va rating before even getting out of the army and receiving my future severance just so that the money that i will get can fall into a non taxable state before they even give it to me so that i would not have to go through the pain of getting all the paper work and jumping hurdles to get MY money back if they tax it beforehand?
NO! I am not asking about severance pay in advance i am asking if i can get a va rating before i get out so that my severance pay WILL NOT be taxed!
3 Answers
- Dennis FLv 75 years ago
You are a perfect example of "A little knowledge s a dangerous thing" You are trying to game the system, That is not going to happen. You will suffer through it just like everyone else has and will have to do.
If you get out with Severance pay, You WILL pay taxes on that amount. Then you apply to VA for a disability rating.
Any payments from the VA will be deducted until the entire amount of severance pay is paid back. VA payments are tax exempt, You get the tax amount back when you file a tax return.
Source(s): Retired AF SNCO. - NWIPLv 75 years ago
No you cannot get a VA Rating before you get out. You are Active so under the DoD not the VA. When you are out then it is transferred to the VA for medical and everything else. You must submit all the paperwork, go through the process, see their doctors, and so on. That process can take up to 2 years to be done.
