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I understand that the money I receive for disability is tax exempt money, however what sense does it make to steal money from my small retirement check and then disguise it as a disability payment? I just don't get it.
Posted in these groups: 
Disability
Military Pay
Disability Military Pay
Posted >1 y ago
Responses: 14
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I'm 100% disabled and was retired at 50% longevity/disability Army. My take home pay is a couple dollare more than If I was a day 1 PVT with 6 months in instead of an E-7 over 20. How does this make sense? I wouldn't change one thing about my Army career but it seems very one sided and unfair.
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SPC David Shaffer
I received 100% Army and 100% VA. I went from 80% on TDRL to 100% permanent a few years ago. It all confuses me to be honest. I should talk to someone who can explain how it all works. I took the VA pay when we had to decide between the two.
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SFC Mark Merino
Now, if we had been on welfare and never worked a day in our life, why do I feel like we would be doing better?
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SFC William "Bill" Moore
We would be doing better! But then, we would have probably voted Liberal Democrat, like the current administration, and believe in the promised Hope and Change,,,,,,,,OK, I think I will just suffer. There is no way I could become that ignorant, no matter how much I dumbed myself down!
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It definitely sucks for that to happen. I would hope they eventually make it so we can receive both regardless of the ratings. If your ratings are less than 50% then the payment will be taken out of retirement pay. The only benefit to that is, as you stated, disability is tax free.
Let's say your retirement pay is $1500 per month. Your going to be taxed for that full $1500. Now let's say your disability payment is $400. Your total compensation will still be $1500 but now you will receive $400 tax free and you will be taxed on only $1100. It's not much but it's a little bit more money in your pocket.
Let's say your retirement pay is $1500 per month. Your going to be taxed for that full $1500. Now let's say your disability payment is $400. Your total compensation will still be $1500 but now you will receive $400 tax free and you will be taxed on only $1100. It's not much but it's a little bit more money in your pocket.
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SGM (Join to see)
Depending on your tax bracket, that $400 of non-taxable pay could be worth anywhere from $60 to $150 in tax savings. So it isn't anything to sneeze at, really.
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