Re: John McCain - 100% tax-exempt disability pension !

"Paul Thomas, CPA" <paulthomascpapc@xxxxxxxxxxxxx> wrote in
news:UTKPj.30674$tG6.1@xxxxxxxxxxxxxxxxxxxxxx:


"Kirby M. Wilson" <kirbg1@xxxxxxxxx> wrote
100% of his pension is completely tax exempt because
he is completely disabled (according to the military)
Wonder how many other service people get tax
exempt pensions ?





All those who are disabled.

Is it worth losing your leg, arm, or use of other body parts to save
a few bucks on taxes.





FYI: His other income is quite taxable.

Agreed. If someone wants VA disability, get your *** down to a
recruiter.

I think you will find that McCain is receiving disability
compensation. Until a couple of years ago, amounts received in
compensation were deducted, dollar-for-dollar, from military
retirement/retainer pay. Thus, the benefit was simply the amount
of income tax that would have been paid on the retirement pay.

A new law provides for restoration of military retirement pay
for those with disability ratings of over 50%, or for those
whose disability was a result of combat.

I think the real problem is that there are probably many deserving
vets who are not receiving compensation because they don't know
how the system operates. I would encourage anyone, prior to leaving
active duty, to sit down with a veteran's rep, such as the DAV,
to get an understanding of the system _prior_ to separation.

Another problem is those who are ordered to a medical board, and
found unfit for further service and then awarded a pension. In
particular the Army appears to be harder on making a disability
award than the VA when looking at the identical medical facts.

scott s.
..

.