All,
I am Army, and I am approaching my last day in uniform and my medical retirement date.
I was given a DOD% of 60% for my unfitting conditions with combat codes (and 100% VA). I have served over 20 years Active so my longevity/YOS% is 59.80%. So all my military retired pay will be tax-exempt. Happy with the outcome, but had questions about steps to have DFAS pay my retired pay as tax-exempt.
So I had to do my Survivor Benefit Program (SBP) elections, and since the nearest Army Base (Jackson) is an hour a way from where I am stationed (Shaw AFB), the Army folks said I could just do the whole briefing and form with the AF Rep on base. No big deal they said as it all just goes to DFAS.
Met with the lady, very nice and super-knowledge (it seemed to me anyways). And we filled out the entire DD Form 2656 (Data for Payment of Retired Personnel). Signed, she scanned in other documents (DA199 and Retirement Orders), uploaded them all to DFAS in front of me, and gave me the DFAS ticket number. She said this would get DFAS moving on setting up my retired pay. Awesome!
When I was filling out the DD form, Section VI was all about Federal Tax Withholding info (filing status, dependents, etc....much like you can change in MyPay or using a W4 with civ job). I asked, "why do I have to even fill out this section, all my retired pay will be exempt from federal tax?" Her answer, "Have to fill out this section or DFAS will not process it." OK...whatever...so I filled out out.
Then she said, that there is ANOTHER step with DFAS to get my retired pay tax-exempt. She said DFAS cannot start me now as tax-exempt as that will mess up my remaining mil pay. She said I have to call DFAS after I am retired, reference the ticket number, and request to be tax-exempt due to the combat-related mil disability retirement. Said DFAS will then send me a form and ask for evidence (like my DA199 and Retirement orders). If they have already started my pay and take federal taxes out, don't worry....you will get that back by the next month.
I asked the common-sense question about why the extra step involving sending DFAS documents that I am already submitting now...her response, "that is just the way it is".
Again, I am fine with doing all that. Been in too long to question the bureaucracy.
But is that what other folks in my situation had to do with DFAS to get pay going right? Just curious.
Thanks,
Jason
I am Army, and I am approaching my last day in uniform and my medical retirement date.
I was given a DOD% of 60% for my unfitting conditions with combat codes (and 100% VA). I have served over 20 years Active so my longevity/YOS% is 59.80%. So all my military retired pay will be tax-exempt. Happy with the outcome, but had questions about steps to have DFAS pay my retired pay as tax-exempt.
So I had to do my Survivor Benefit Program (SBP) elections, and since the nearest Army Base (Jackson) is an hour a way from where I am stationed (Shaw AFB), the Army folks said I could just do the whole briefing and form with the AF Rep on base. No big deal they said as it all just goes to DFAS.
Met with the lady, very nice and super-knowledge (it seemed to me anyways). And we filled out the entire DD Form 2656 (Data for Payment of Retired Personnel). Signed, she scanned in other documents (DA199 and Retirement Orders), uploaded them all to DFAS in front of me, and gave me the DFAS ticket number. She said this would get DFAS moving on setting up my retired pay. Awesome!
When I was filling out the DD form, Section VI was all about Federal Tax Withholding info (filing status, dependents, etc....much like you can change in MyPay or using a W4 with civ job). I asked, "why do I have to even fill out this section, all my retired pay will be exempt from federal tax?" Her answer, "Have to fill out this section or DFAS will not process it." OK...whatever...so I filled out out.
Then she said, that there is ANOTHER step with DFAS to get my retired pay tax-exempt. She said DFAS cannot start me now as tax-exempt as that will mess up my remaining mil pay. She said I have to call DFAS after I am retired, reference the ticket number, and request to be tax-exempt due to the combat-related mil disability retirement. Said DFAS will then send me a form and ask for evidence (like my DA199 and Retirement orders). If they have already started my pay and take federal taxes out, don't worry....you will get that back by the next month.
I asked the common-sense question about why the extra step involving sending DFAS documents that I am already submitting now...her response, "that is just the way it is".
Again, I am fine with doing all that. Been in too long to question the bureaucracy.
But is that what other folks in my situation had to do with DFAS to get pay going right? Just curious.
Thanks,
Jason