Concurrent Retirement and Disability Pay (CRDP) retro payment
2008-Dec-18 at 12:30 by Veterans Law Project
The concurrent retirement and disability pay (CRDP) retro payments being paid to retirees rated with “individual unemployability” (IU) by the VA are taxable in the year received. CRDP always has been taxable income, as it is a restoration of taxable military retired pay. According to the Internal Revenue Service (IRS), income is considered taxable in the year it is received. This is the case even though the retro payment is to make you whole from an earlier time. Many have asked about the ability to file an amended tax return. It is not an option. Amended returns are for correcting a past mistake, or for when you paid taxes in the past that you didn’t need to pay. The CRDP retro payments for IU don’t apply to either of these situations because you were paid in accordance with the laws and policies at those times. The laws changed in 2008 to make things different, so the payment is considered a current year income payment. [Source: MOAA News Exchange 18 Nov 08 ++]
2010-Aug-4 - Embezzlement of Service Connected Disability Posted by Anonymous
Although the United States Code is very clear in its wording and intent, civil court judges nationwide have routinely ignored federal law and calculated veterans’ disability compensation into divorce settlements as a divisible asset or income. And it's just not men; disabled female veterans are also experiencing this problem when they get divorced or declare bankruptcy.
<br>In California, only one family law code section ( FC 4504 even mentions disabled veterans benefits and application of those benefits in support cases. FC 4504 also applies to SSI/SSDI cases yet other code sections that cover SSI/SSDI fail to cover disabled veterans benefits. (See FC 5246, FC 17400.5 and FC 17450. As a result, California courts routinely treat Veterans Disability Benefits differently than a disabled person on SSI/SSDI thereby causing disabled veterans serious hardships.
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<br>A Veteran is Court order to pay Child Support whicj calculated at 10%. The Veterans kids are 22 and older and California have garnished $67,000 since 2002 and on a recent audit didn't have DOD, VA, SSA payment and was told that there was a welfare debt and never produced an audit. California sent a Levy letter to Arizona and Arizona new nothing about SB 285, Wright. Disability benefits: attachment.
<br> Existing law prescribes the procedures to obtain a writ of attachment and to determine the amount that may be attached. Existing federal law prohibits payments or benefits due to a disabled veteran, as specified, from being assigned or liable to attachment, levy, or seizure by or under any legal or equitable process. This bill would provide that benefits awarded to veterans for service-connected disabilities, as provided, shall be exempt from the
<br>claim of creditors, and shall not be liable to attachment, levy, or seizure, as provided, excep as otherwise authorized under federal law, as specified.
<br> This bill would declare the intent of the Legislature to conform to existing federal law. Veteransbiz is looking for a Lawfirm that would attend a Veteran Legal Issues Caucus at an upcoming Alternative international conference. Please contact info@veteransbiz.com.
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