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| CRDP and Tax | Login/Join |
| New Member |
everything i've read on here about CRDP being taxable is BS. I don't even think the government knows whats going on with this. I've been trying for one year to get to the bottom of it. since its tax time, i called DFAS, Dept of Veterans Affairs, and the VA. none of them knew the answer without putting me on hold and looking in the regulations or talking to their supervisor. they all came back and told me that the 1099 i get for my RAS includes my CRDP and that i would not get another 1099 for my CRDP. well when you match up the RAS with the 1099, the CRDP is not included in the taxable amount. so unless all 3 of those organizations don't know what they're talking about, my CRDP is not being taxed, and it will not be taxed. appreciate any responses from someone who knows the answer from personal experience(no guesses). thanx... | ||
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Super Member |
just don't do anythng till you get all the 1099's W-2's etc, etc...... usually by March you should have it all... if you fill it out now without those monies included they'll find you later and send you to the gulag for 300 years, they'll accuse you of being a *CHEATER*  .... only them who's schit don't stink (like Franks and Geithner) get a pass.... so lay low till you are sure all the reports are in... that's is what I do anymore.One Flag......One Heart......One Nation............EVERMORE | |||
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| Lead Moderator, Veterans Issues & Education Founding Member DVG  |
CDRP is taxable, CRSC is not taxable, VA Compenstation is not Taxable, GI Bill Benefits are not taxable, retirement pay is taxable. Since I do not receive retirement, I have never seen the forms that DFAS provides. From DFAS: Taxability CRDP payments are taxable according to your current retired pay Federal Income Tax Withholding (FITW) tax rate and may affect the amount you wish to have deducted for State Income Tax Withholding (SITW). Is the compensation taxable (CRSC)? Answer: Based on current law regarding taxability of disability income (26 U.S.C. 104), CRSC is not taxable. | |||
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| New Member |
i've seen all this Dave. go back and read my original post. i'm trying to get an answer from someone who is in my shoes (retired and receiving a retirement check, and receiving another check for CRDP). thanx... | |||
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| Lead Moderator, Veterans Issues & Education Founding Member DVG |
A question - do you have combat injuries and are receiving CRSC instead of CRDP? Just a thought. | |||
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| New Member |
nope. its CRDP. | |||
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 Derelict Veterans Group  |
jpdusa... Dave is right: 1. CRDP IS TAXABLE. 2. CRSC is not. 3. Military retirement pay is, but 4. VA disability pay is not. If you would like a second opinion Google it. It is easy to learn all there is to know about this if you are willing to research the information on this WEB site. Start on the home page. Look at BENEFITS and follow the links. You can also get there by starting with military pay. I think your problenm in not understanding this comes from the "VA WAIVER" phrase on your RAS. AND, I wear those shoes. Air traffic controllers tell pilots where to go. | |||
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| New Member |
are you saying that the only amount that is taxed is the VA Waiver amount? if so, that is just peanuts compared to the CRDP check i get. i don't understand why they say CRDP is taxable if that is the case. in a couple years, i won't even have a VA waiver amount. and i have researched the hell out of this (including this site and google). please be clear in your response - are you being taxed on your "VA Waiver amouunt only? do you only get one 1099 (your RAS 1099)? thanx.. | |||
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| member |
I cannot vouch for the CDRP issue. However, I do receive CRSC, VA Compensation, and retirement. The 1099 only reflects the reduced retirement, completely ignoring both the VA compenstaion and the CRSC, effectively making it a 'double dip' tax exemption. I have questioned it to the VA, to no avail, they don't know what I am talking about. Therefore, in the vein of not looking a gift horse in the mouth, not sure of the real intent, I accept their benevolency. | |||
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| ------------------- Founding Member ------------------- Eres Tu! Freddy |
NO..NO..NO People ! You are not reading in the same English that MAC used to answer the question of "What is taxable and what isn't" CRDP IS TAXABLE CRSC IS NOT TAXABLE COMMON FORMULA? LAST LETTER OF THE ABRV ...P FOR CRDP = PAY and C IN CRSC = COMPENSATION THE RAS REFLECTS THE MILITARY PORTION OF MONEY TO YOU..WHAT IS NOT THEIRS...THEY CALL A """"""WAIVER""""" THAT IN ITSELF DOESN'T MEAN SQUAT TO THEM...IN HOW YOU INTERPRET THAT, FOR THEY ASSUME YOU WILL BE SMART ENOUGH TO FIGURE IT OUT...SO...PAY= TAXABLE ...AND COMP = NO TAX EXCEPTION: SSA SSA WHETHER IT IS TAXED DEPENDS SOLELY ON THE HOUSEHOLD INCOME...BUT RATHER THAN TRYING TO EXPLAIN IT HERE..."""EVERY IRS 1040 BOOKLET""" HAS THE WORKSHEET IN IT FOR THE SOCIAL SECURITY. Ya can quit shakin yer head Mac !! Eres Tu! | |||
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| New Member |
thanx for trying. but you need to go back and read the original post. | |||
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| Lead Moderator, Veterans Issues & Education Founding Member DVG |
Here is the deal. The 1099 is what DFAS reported to the IRS and what you need to file your taxes based on. They report the income that is taxable and the tax withheld. If they made a mistake, then they will issue a revised 1099. You are only required to report what they report to the IRS as taxable income. This is not a 100% rule, as if you have small amounts of income below the reporting threshold, you are supposed to report it as taxable income. For DFAS or any other income source, what is in your 1099 is what the IRS has received and what is required to be reported on your tax return. | |||
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| Derelict Veterans Group |
I really can't think of any other way we can explain this to jp dusa. Guess there will always be some who just don't get it. Air traffic controllers tell pilots where to go. | |||
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| member |
Mac, read jpdusa's original post. He has a very valid concern. His 1099 does not reflect taxable CRDP. So, in essence, DFAS and the VA are 'stating' that it is not taxable. He is asking for other persons in the same situation, to see what is, in fact, happening. Air traffic controllers may tell pilots where to go but they are still responsible and accountable for the safety of the plane, crew, and passengers. The tax consequences is his responsibility and he may eventually be held accountable. If I were him, I would keep a few dollars hidden away in the bottom of the sock drawer to cover it when they realize their error. | |||
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| New Member |
i'm not an expert, but i give all my paperwork to my accountant and he figures everything out, i sign and get paid with no audits. or you can ignore the experts, do it yourself, or go to instant tax service | |||
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| Derelict Veterans Group |
If one looks at one's 2010 RAS and reads the message section at the botton of the statement the third message will say: "No annual cost of living adjustment will be added to VA compensation in 2010." (next sentence is what is important in understanding this whole ball of wax.} "YOUR CRDP AMOUNT IS $(amount)." So, you see, the federal income tax on military retirement pay AND CRDP are both rolled up in this particular ball of wax. BOTH are taxable. Withholding has been made on each. You will not receive seperate 1099s. Your RAS is correct. This may become less difficult for the OP to understand in 2014, when VA waiver becomes something of the past. To preclude any misunderstanding I perhaps should add that retirees who are 100% SC or IU have no VA waiver. Air Traffic controllers tell folks to read the remarks section of the RAS, and... Air traffic controllers tell pilots where to go. | |||
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| New Member |
if you read this entire thread, you will see that the CRDP amount has not been included in the amount that was taxed on my 1099. Only my Gross Pay has been taxed. In fact, they actually deduct the VA Waiver amount before taxing my income. so i'm not getting taxed on my CRDP amount OR my VA Waiver amount. Unless I get another 1099, I'm NOT being taxed on my CRDP. Here is what my current RAS looks like: Gross Pay: 3509.00(this is my retirement$) VA Waiver: 40.53 Taxable Income: 3468.47 Not really hard to understand (unless i'm the only one this is happening to - which i doubt). | |||
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| New Member |
P.S. I do not have 100% disability. I'm 50%. My RAS Message Section shows my CRDP amount as: 729.47 | |||
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| member |
jpdusa, apparently your VA waiver is only the amount that your total VA compensation exceeds CRDP. Therefore, the CRDP is captured in the gross pay and taxable income. Does your disability possibly rate CRSC? As has been stated above, it is indeed tax free. The full VA compensation amount is deducted from taxable income and then an equal CRSC tax free compensation is added. | |||
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| New Member |
no i do not qualify for CRSC. I receive CRDP. and it is not "captured" in my gross pay or taxable income (see my RAS specifics in my previous post). to make this less complicated, forget about my VA Waiver, i know what that is, and its peanuts and is not worth confusing things. The problem here, is that the amount i actually receive for CRDP (729.47), is not being taxed. | |||
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