VA Compensation Offset For Drilling Reservists

Veterans Administration (VA) Offset for drill pay for National Guard and Reserve drilling members

If you are having problems with this issue and could use the assistance of a Human Resources, experienced military paralegal or former Judge Advocate lawyers, reach out to us.

Here is a lawyer’s hypothetical as posed to me:

Vet filed a 2013 claim, which was granted in 2022, and past due benefits have been paid. He disclosed in 2013 that he was receiving drill pay.

Recently, he received a letter from VA notifying him that he cannot receive both VA compensation and drill pay at the same time, and asking him to confirm the number of days he had drill duty for FY 22. He understands that he cannot receive both, but his concern is whether VA will offset for the entire time since 2013. My research has not turned anything up. So – any thoughts – does the bar against concurrent receipt apply only prospectively, from the date of the favorable VA decision? Thanks for any input.

So if you receive a large retroactive payment based on an earlier effective date, do not spend that money because the VA and / or DOD and/or IRS will come looking for their share.

Contact an accountant who you trust or contact us before you spend the money or invest it.