A veteran can receive full military retirement (through the DOD) and full VA pension.

A veteran can receive full military retirement (through the DOD) and full VA pension.  However, the military retirement is countable income towards the IVAP in calculating the pension amount.

If a veteran is rated less than 50% service connected, he can choose full taxable military retirement and no non-taxable VA compensation OR offset his taxable military retirement by the amount of non-taxable compensation.

If a veteran is rated 50% or greater service connected, he keeps both military retirement and VA compensation.  The amount (which would otherwise be offset) is called concurrent retirement disability payment (CRDP) and is taxable.  Additionally, the veteran can keep the full amount of retirement.

If the service connected condition is combat related (e.g. hearing loss, Agent Orange presumptive condition, wound, etc.) and at least 10% rated, the retired military veteran can apply for a matching amount of DOD to the VA.  This is called combat related special compensation (CRDP) and is non-taxable and paid through the DOD.  The veteran has to apply for this using DD form 2860.  The veteran cannot have both CRDP and CRSC, but CRSC is non-taxable whereas CRDP is taxable. 

To increase your monthly income, please contact us about a FREE HANDBOOK about VA Benefits, written by David Wingate, an accredited VA Attorney, of Senior Life Care Planning, LLC, go to info@seniorlcp.com or if you require additional information about VA Benefits, visit our Senior LCP's Website.

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