Question:
Hello Jim, I hope that you can answer this question or send me in the right direction. Is there a law that states that if Combat Related Special Compensation (CRSC) entitlement exceeds retirement pay then you are only entitled to have your retirement pay tax free and not the full amount of CRSC. I understand that I'm only allowed to receive CRSC or retirement pay. My CRSC rating is 100%.
Jim's Reply:
Each individual tax situation is so different that I hesitate to try and answer your questions. I'll let you in on a family secret though...I've used the same CPA firm for almost 20 years. I don't use a CPA because I run a big business or have a lot of money, I use a CPA because like you, I sometimes have tough tax questions. And for what it's worth, I'm not talking about a seasonal "tax preparer" with a booth in K-Mart, I mean a real CPA.
There are times that it pays to get an expert on the task. I could send you to various web sites where you could muddle around finding different answers but you've probably already done that.
If you'll ask around in your region you'll discover a small business that houses a couple of CPAs who have some experience with veterans finances and you'll learn PDQ that their fee is well worth it. I know I've avoided a lot of traps by having a pro take care of it.
CPAs usually charge by the amount of work they put into your tax returns and if you're like me without a ton of income, debt or cash flow, you may find the service to be a real bargain. And your questions will be reliably answered by a pro.
Good luck!