is VA CDRP money tax excempt in Retired Military Vets Disability Tax (Concurrent Receipt) Forum

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is VA CDRP money tax excempt

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1electraglide	is VA CDRP money tax excempt		Lead	[-]
Rookie VBNer Posts: 3 Jan 27 08 11:44 PM	I'm a 100% disabled Marine. I get two (2) monthly checks, one from DFAS which I get a 1099 Form each year and another check from the VA for CDRP which I do not get a 1099 From. I've had the same tax person doing my taxes for over 10 years...I've repoted to her the fact that I'm getting two set of monies .However, she's advised me several times that we only have to report the DFAS money as per the 1099 Form and that the VA CDRP money is tax excempt. My understanding is the only tax excempt VA income is for combat special pay that you have to apply for individually from the service members branch of service. I live in California, question...is VA CDRP tax excempt? Jack
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brianwl		#1	[url]	[-]
Posts: 11847 Jan 28 08 12:05 AM Does not play well With others.	CRDP is taxable. CRSC is tax exempt. VA compensation is tax exempt. It sounds to me like you don't know what money you're getting from who. You need to verify it.
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MSgtMack		#2	[url]	[-]
Posts: 3502 Jan 28 08 12:09 AM	1electraglide, Your VA comp and CRDP are to different things. Your 100% Va Comp is just that and is tax free. You will not get a 1099R for it nor is there anywhere to put it on yout tax forms. The check you get for CRDP comes from DFAS and is the return of your reitrement that the VA was withholding. That was in the old days. What you are experiencing now is "Concurrent Receipt". You are getting both your reitrement and VA comp. CRDP is taxable and has to go on the tax form is why your get a 1099R. Your tax person is telling you the right thing. Yes you have to apply for CRSC (Combet Related Special Compensation) from your branch of service, but only if your disabilities are combat related. CRSC is also a return of your earned retirement and it too is tax free, like your VA comp. When it comes to CRDP and CRSC you can draw one or the other, not both. Mack
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