Severance Pay tax info

Jason Perry

Benevolent Leader
Site Founder
Staff Member
PEB Forum Veteran
Registered Member
#41
Yes you can... Call DFAS, IRS... I guess I would depend how much money... But Taxes on 0% is ZERO!!! :confused:
Indeed, a good point! ;)

Thus, I quite often comment that "possessing well-informed knowledge is truly a powerful equalizer."

Best Wishes!

Recall that a 0%, 10%, or 20% rating from the military results in the same payout- severance pay (which is normally 2 x base pay x yrs of service). So, 0% could be a lot of balboas.
 

Ammoman1991

Registered Member
#42
Dumb Question:
Was Med Sep'd in June 2009 @10% per the AF and my DD214 shows $74k as the severance amount. The VA rated me at 20% with my separation condition @ 0%. Apparently my rating increased and is backdated to Dec 2012, but now they are offsetting my disability $125 a month. Now for the question, since my retirement appeal was denied are they honestly going to take that $125 a month for 592 months? or 49 years 4 months? I could stomach it a lot better if I got my retirement and they were offsetting that, but to owe a debt for the rest of my life is over the top.
 

BigNes

PEB Forum Veteran
Registered Member
#43
Does dfas still send confirmation emails when you send in all the info to request taxes back? My husband sent in everything 5 weeks ago and he hasn't received an email or anything. He was told to email everything and it would be taken care. No news since. Also I seen where a previous post had the email that was sent to them and it had a way they could track their progress. Is there a way to track it?
 

rbeau30

Registered Member
#44
Came upon this forum and thread in a google search. Just was separated and I too sent in my tax refund claim but via US mail. Nothing heard yet. Anyone gone through this recently? What was your timeframe?
 

USMC4341

Registered Member
#45
IMPORTANT NOTICE:

I followed the instructions in the first post but evidently the DFAS you send this to is service specific. I sent it to DFAS - Indianapolis and as a former Marine I should have sent it to DFAS Cleveland. Here is the contact info I was given for Marine Corps claims:

Please send a copy of your documents to us. DFAS-INDIANAPOLIS does not process USMC pay.

Please mail to us at:
DFAS-CL JFLTC
1240 EAST NINTH STREET
CLEVELAND OH 44199

Or scan/email to: [email protected]

Or fax to 216.367.3613

Please send us a copy of your PEB findings, the VA decision award letter, and your dd214/215.

Hope this helps save others some time.

Respectfully,
Chris
 

phillymarine

Registered Member
#46
I was discharged medically from the Corps with 20% DOD and 30% VA. My severance pay of $46,000 was taxed and I only received $35,000. I was discharged August 30, 2013. I want to contact DFAS prior to Dec 31. I'll try to follow the steps above but any additional advice is greatly appreciated.
 

rbeau30

Registered Member
#47
I had ZERO luck calling them. What I finally did the other day was submit an "AskDFAS" question via the website, I explained my situation, and they replied with a fa number and POC. Information in the DFAS webite is old and outdated and does not work. They asked me to send them via fax, a memo, DD214, Separation orders, and VA award letter. They opened a case yesterday.

One thing of note... If you happen to send it to the wrong place, you will not get any sort of reply indicating so. Just be persistent until you actually get a hold of someone.
 

rbeau30

Registered Member
#50
Update...

Timeline is this so far.

- Put in an ask DFAS question asking for instructions on claiming a refund of taxes witheld on Monday 11 November.
- Got contact info and fax (317-212-4141) number for where the Airforce sends the: Memorandum, Separation Orders, DD 214, and VA award letter on 12 November
- Case was opened in CMS on 19 November

I'll add more as this progresses.
 

rbeau30

Registered Member
#51
JUST got deposited into my account the taxes that were witheld. I don't have any paperwork or anything regarding the calculation but I think it was just the federal taxes withheld or they in fact did tax SOME of the severance.
 

Weapons loader

PEB Forum Veteran
Registered Member
#52
JUST got deposited into my account the taxes that were witheld. I don't have any paperwork or anything regarding the calculation but I think it was just the federal taxes withheld or they in fact did tax SOME of the severance.
I've read on here that some states will refund state taxes and some will not, I'd would search the site and possibly contact your state for a refund. On another note that was quick, I can't get a travel voucher paid that quickly.
 

19DScout

Registered Member
#53
Just an update. I was separated from the US Army June 2013, 20% combat related. I received my VA award for the same injury Sept 2013 and faxed my documents to 317-275-0248. I waited two months and had not received anything from Dfas. So I called and they said you now have to mail them. I followed these instructions from the Dfas website and mailed my packet of info the beginning of November.

Disability Severance Pay
If you paid taxes on your disability severance pay, you could be due a refund. A refund is awarded in the same calendar year in which a military member received disability severance pay. To obtain a refund from us you must submit your Veterans Affairs compensation letter and a copy of your DD Form 214 (member copy 4) to us before December 31 of the year in which the disability severance pay was paid. Submit your request to:
DFAS-IN
Dept. 3300 ATTN: 3891
8899 East 56th Street
Indianapolis, IN 46249-3300

After the first week of December 2013 I still had not received anything. By anything I mean not even a confirmation or a deficiency list with further instructions. So I call general customer support and was given another email and phone #. [email protected], no reply from this and the # was automated and would go right to voice mail after a brief message. No reply from the # either.

Dec 17 I send a message through Ask Dfas and was told to "please call the DFAS Separations Office at 1-371-212-5950 for further assistance in this matter."
Well that number is just plain wrong and goes to the error operator.

Today I emailed [email protected] as mentioned a few posts back. She replied within 5 minutes and said she "forwarded my email to the Army Separations Supervisor [email protected]. They process disability severance. You can email Brandon with questions."

[email protected] is the Army Separations supervisor and this is where they process disability severance as of December 18th 2013.

Just received a call and my check is in the mail today and will arrive in 7-10 days. Celebration time!!!!!!!!!! Via mail seems to be the ticket.

 
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oldinfscout

Registered Member
#54
Where does the 10 D designation turn up?
I was advised that I was, however I know the devil is in the details and do not see it on the 199.
Am I looking in the right place?
 

oldinfscout

Registered Member
#55
Disregard located it in DA Form 199 Section 5 Administrative Determinations, of the new form dated Mar 2012.
10 D is the equivalent of
Statement 4: " The disability severance pay was awarded for disability incurred in a combat zone or Incurred while performing combat-related operations as designated by the Secretary of Defense (10 USC 1212)".
 

Warrior644

PEB Forum Veteran
Registered Member
#56
Where does the 10 D designation turn up?
I was advised that I was, however I know the devil is in the details and do not see it on the 199.
Am I looking in the right place?
Disregard located it in DA Form 199 Section 5 Administrative Determinations, of the new form dated Mar 2012.
10 D is the equivalent of
Statement 4: " The disability severance pay was awarded for disability incurred in a combat zone or Incurred while performing combat-related operations as designated by the Secretary of Defense (10 USC 1212)".
Indeed, good deal! Enjoy for sure! :D

Thus, I quite often comment that "possessing well-informed knowledge is truly a powerful equalizer."

Best Wishes!
 

Jamesc

Registered Member
#57
In May 2013 I was medically discharged from the U.S. Army with a rating of 10% and a VA rating of 40%. I have a DD214, VA award letter, and my separation orders. I received both my Army lump some severance pay and VA monthly check by September 2013. I was informed that both of these would be non taxable. However, taxes were withheld from only the Army severance pay. Last week I received my W2 from the Dfas/Army and my severance pay amount was added into box 1 as wages/income. I have not filed a 2013 tax return yet. When I called DFAS and after researching this matter, it appears there was a deadline of 12/31/13 that I was not aware of in order to correct the w2. They told me I had to wait until 2015 and claim in on my 2014 tax return. Am I still able to file this 2013 tax return and get the taxes back that was taken out?
 

alibs

PEB Forum Veteran
#58
In May 2013 I was medically discharged from the U.S. Army with a rating of 10% and a VA rating of 40%. I have a DD214, VA award letter, and my separation orders. I received both my Army lump some severance pay and VA monthly check by September 2013. I was informed that both of these would be non taxable. However, taxes were withheld from only the Army severance pay. Last week I received my W2 from the Dfas/Army and my severance pay amount was added into box 1 as wages/income. I have not filed a 2013 tax return yet. When I called DFAS and after researching this matter, it appears there was a deadline of 12/31/13 that I was not aware of in order to correct the w2. They told me I had to wait until 2015 and claim in on my 2014 tax return. Am I still able to file this 2013 tax return and get the taxes back that was taken out?
You should not have to wait that long. File 2013 as is, which DFAS taxing you. Talk to Dfas again to update your 2013 W2. You will need to give them dd214, VA award letter and ...(something else from VA, just send them all your VA papers). Will take a few months for DAFS to process. Then file for 1040X (for correction). Well by the time DFAS updates your W2 it may be 2015. From start to finish, mines took 3 months, and DFAS says its in the mail now. With what I read so far, IRS will take about 5 weeks to give back my taxed dis/sev pay. Get confirmation from DAFS each time you talk to them, before my 3 months wait, there was 10 months me trying to get a hold of someone in DFAS that knew what I was talking about, even when I talked to someone a month prior that was supposed of bin handeling my request.
 

JMAC8026

PEB Forum Veteran
Registered Member
#59
Just an update. I was separated from the US Army June 2013, 20% combat related. I received my VA award for the same injury Sept 2013 and faxed my documents to 317-275-0248. I waited two months and had not received anything from Dfas. So I called and they said you now have to mail them. I followed these instructions from the Dfas website and mailed my packet of info the beginning of November.

Disability Severance Pay
If you paid taxes on your disability severance pay, you could be due a refund. A refund is awarded in the same calendar year in which a military member received disability severance pay. To obtain a refund from us you must submit your Veterans Affairs compensation letter and a copy of your DD Form 214 (member copy 4) to us before December 31 of the year in which the disability severance pay was paid. Submit your request to:
DFAS-IN
Dept. 3300 ATTN: 3891
8899 East 56th Street
Indianapolis, IN 46249-3300

After the first week of December 2013 I still had not received anything. By anything I mean not even a confirmation or a deficiency list with further instructions. So I call general customer support and was given another email and phone #. [email protected], no reply from this and the # was automated and would go right to voice mail after a brief message. No reply from the # either.

Dec 17 I send a message through Ask Dfas and was told to "please call the DFAS Separations Office at 1-371-212-5950 for further assistance in this matter."
Well that number is just plain wrong and goes to the error operator.

Today I emailed [email protected] as mentioned a few posts back. She replied within 5 minutes and said she "forwarded my email to the Army Separations Supervisor [email protected]. They process disability severance. You can email Brandon with questions."

[email protected] is the Army Separations supervisor and this is where they process disability severance as of December 18th 2013.

Just received a call and my check is in the mail today and will arrive in 7-10 days. Celebration time!!!!!!!!!! Via mail seems to be the ticket.

I just called the number and changed the area code to 317 and reached someone in separations branch army....try 317-212-5950. I already filed my 2013 taxes but I did mail and fax my stuff well before dec 31 deadline with no response....hopefully IRS coughs up my money with no issue but we will see.


JMAC
 

natehuit0829

Registered Member
#60
Hey guys,

I was Med boarded and discharged from the Army in 2011. I was wondering if it was too late to file for a refund on the severence pay i received when i got out? i was already told i could get a refund by my PEBLO, but forgot somehow. Is it too late? they took out like $2500 that was supposed to be tax free.

Keep in mind i filled out my form requesting a refund and sent it in along with a copy of my DD214 and cover letter and whatever other crap they needed to see. I never heard back from anyone at all. And by "at all" i mean not a single letter, or email, or phone call, or even a kick in the nuts letting me know if they got it or what to do next.
 
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