Question on Severance refund w2

mustang33

PEB Forum Veteran
#1
Ok, a little back ground.

I was medically discharged in Feb '12 from active army. I received my severance pay in March '12. I met the criterita to receive a severance pay tax refund and received the refund in May '12.

I checked mypay today to review my w2. Under Income is show $7x,xxx but in the tax block it only shows $5xx. There are no special comments that state the severance was tax free. This doesn't seem right. By the looks of the w2 it seems I would owe a whole lot of taxes to the irs.

Anyone have any input on this or the others who received their severance pay tax refund? What do your w2's look like?

Sid
 

diablos30

PEB Forum Veteran
#2
mine says the same thing on mypay, i was told it would be updated and would be mailed to me and i could also get the updated copy from mypay
 

mustang33

PEB Forum Veteran
#5
Update:

I spoke with DFAS. If this happens to you here are the step to get a corrected w-2. I hope this helps. He said they would send a corrected w-2 to my address. I seperated Army so I don't know if it's the same for the other branches of service.

Sid

Send an email to: [email protected] and in include the following:

Name
SSN
Address
Email
Phone #
(attach a copy of your current w-2)

To Wom it may concern:

I seperated from the Army on (date) under a medical discharge. I received a severance pay in the amount of $xx,xxx. I met the needed requirements and was refunded the taxes that were originally deducted from my severance pay. On my current w-2, my severance pay was included with my wages. I need a corrected w-2 that doesn't include the severance pay in my wages. All my information is above. I have attached my current w-2. The DFAS representitive I spoke with, advised me that this is the process to get a corrected w-2 for my situation.

Thank you for your time,

Name
 

mustang33

PEB Forum Veteran
#7
Yes, mine was direct deposit into the account I used for my military pay. Once I filed the paperwork, it took 4-5 weeks to get it. I ended up calling my last transition finance and the where able to give me an update. Something like they had to release the funds....
 

diablos30

PEB Forum Veteran
#8
thanks, i was curios as dfas said something about a check.

sure would be nice if they would move it along so i could get my refund and do my taxes.
 

Jamesc

Registered Member
#10
Sid,
Did you file your taxes with the w2 that includes the severance pay in box 1? Or are you waiting for the corrected w2 to file? I just wrote an e-mail like you stated above to receive a corrected w2. Isn't there a deadline tho of 12/31/13 to get it corrected? Now im a little confused! I don't want to have to do a 1040x.
 

mustang33

PEB Forum Veteran
#11
I filed with the corrected w2 that didn't include any severance pay. That was last year so I hope the email address is still the same. Good luck.
 

Jamesc

Registered Member
#12
Sorry about that! I feel like an idiot for not realizing the year that was posted. Hope you don't mind me asking, but when you made that request for the corrected w2 was that before 12/31 or after?
 

mustang33

PEB Forum Veteran
#13
No worries. I sent the email 1/23/13 so it was after the first of the year. I think the 12/31 deadline is to get your taxes back that were taken out of your severance pay.
 

Jamesc

Registered Member
#14
This is the boat we are in. They took taxes out and when we got our w2 the severance pay was included with my normal wages. So it makes it look like I made almost 100,000. I did not have anything in box 14.
 

mustang33

PEB Forum Veteran
#15
I don't know how that would work. I got my taxes back before the end of the year. The corrected W2 only showed what I made from Jan-Mar of '12.
 

gsfowler

Staff Member
PEB Forum Veteran
#17
I suppose to receive a severance pay between May to June 2016. So my question is this when i suppose to receive a severance pay tax refund?
You may not need to request a tax refund from the IRS, since you anticipate separating in May to June. Here are some of the possible scenarios.
  1. You receive severance pay for a condition that was combat related. DFAS should not withhold taxes.
  2. Your severance was not combat related, you get severance and it was taxed, however you get awarded C&P from the VA for the same condition. You can contact DFAS (since there is plenty of time left in the same calendar year, DFAS can refund you)
  3. Now say, DFAS does not refund you, you would have to file your 2016 taxes in between Feb-Apr 2017, and then you may get all or part of the taxes withheld from your severance based upon your own unique situation.
 

xtreme2015

Registered Member
#18
You may not need to request a tax refund from the IRS, since you anticipate separating in May to June. Here are some of the possible scenarios.
  1. You receive severance pay for a condition that was combat related. DFAS should not withhold taxes.
  2. Your severance was not combat related, you get severance and it was taxed, however you get awarded C&P from the VA for the same condition. You can contact DFAS (since there is plenty of time left in the same calendar year, DFAS can refund you)
  3. Now say, DFAS does not refund you, you would have to file your 2016 taxes in between Feb-Apr 2017, and then you may get all or part of the taxes withheld from your severance based upon your own unique situation.
Thanks, basically I'm in #2, maybe #3 if I don't contact DFAS on time.
 

HEKETR42

PEB Forum Veteran
Registered Member
#19
I am about to start my transition leave that will be ending by DEC 30, 2017. I will get severance pay I guess couple days after my last paycheck with army. So my question is what any one recommend me to do since my last day in the army (last check) is in dec 30....How I can get my refund on time and also what is the memo or document I need to request DFAS to refund my taxes?????
 
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