VA disability benefits and CSRS [if the disability is combat related and the VA payment is deducted from retired pay] is, or was, included in total income and would increase the amount on which the sales tax deduction is based. EXAMPLE -If taxable income was $65,00000 and VA benefits $5000.00, plus CSRS reimbursement was another $5000.00, the income on which the sales tax deduction is based should be $75,000.00 vice the $65,000.00 taxable income.
