Severance Pay tax info

Stef

Registered Member
#21
So I am being medically discharged with 20% from the army with a really heavy severance pay that I am being told will be taxed cause its not combat related. After 25% taxes taken out its still a heavy amount. The VA is saying they are going to give me 20% for my other conditions that I am not being medically discharged for and also another 20% for the same condition that I am being medically discharged for , so all together the VA is giving me 40%. Does that mean come tax return time I will receive most of that money they took back? How does this work can someone help me out.
 

gavinpedrick

PEB Forum Veteran
#24
if i received a yes in 10a and 10d will my severance be taxed?
Did you read the post ? It says you will be taxed initially but you will get it all back. I think it works out better that way anyway. Most of the time everyone blows all the money and by then you will be thankful for the tax recoup later down the road. Either way it's a simple process as long as you get everything done before December. You should have you refund back in a weeks time.
 

diablos30

PEB Forum Veteran
#27
anyone know the average time its taking dfas to process refunds? also, do they give you any kind of notification or do i need to be watching my bank account?
 

diablos30

PEB Forum Veteran
#29
update, called today to check on status and found out that this email is obsolete.


[email protected].

DO NOT SEND REFUND REQUESTS TO THE ABOVE EMAIL

i had to send mine to a personal account, so i would recommend calling to get the email or faxing.

also, they should reply to your request letting you know that they have received it.
 

goblue56

Registered Member
#33
got my confirmation email today

also some contact info for the air force guys

Mrs. McElwain
317-212-3657
Diablos30, do you have the email address or fax # you used to finally get the confirmation? I've been trying since sept to get all my documents submitted. I was given the same fax# and email that hasn't work for anyone by my peblo. I've also tried calling Mrs. McElwain numerous times and only get the answering machine and no return calls. I would seriously appreciate it if you have the correct info to get this submitted before the end of the year.
 

diablos30

PEB Forum Veteran
#34
the fax number i used was 317-275-0248, that was to the army side though as i found out when i called.

i waited one day and called this number to inquire about the status 317-212-2829, it was at that time i was told that number above was for the army, but the lady forwarded it to the section for my branch of service.

it was once business day later that i received and email from them, i pasted the email below as it also has some contact info


hope this helps ya out



A case was entered on your behalf on Dec 3 2012 12:16pm and is currently being processed to resolve the problem indicated: Disability Severance. The current status of the case is: Referred to DFAS AC 3892 Sep Team C04

If you want to track the status of this case, you can log onto the vMPF at https://w20.afpc.randolph.af.mil/AFPCSecureNet20 then select vMPF. Under the Help section select the Case Management Section and review the progress of your case.

If you have questions regarding this case please contact: GS-545-08 Duke, Glenda, mailto:[email protected]
DFAS AC 3892 Separations
 

hawkdrivermtp

PEB Forum Veteran
#35
Just an update for those who were trying to make the DEC 31st cut-off to receive their severance taxes refunded by DFAS. I was Army and used the above mentioned email to send my info to DFAS to process my refund, but realized that email is not good. I did call 317-212-2829 and spoke to a live person. My request for my tax reimbursement was received prior to DEC 31st, however, whoever started processing my W2 did so without using my tax refund request. The lady I spoke with acknowledged someone made a mistake and made a note of it. She initially told me I would receive my refund in about 20 days, but then she dug and saw that error and told me I would be receiving a corrected W2 and have to file for those severance taxes when I file with the IRS. I'm not sure if any of you will be in the same boat, but thought I would give you all a heads up.

[email protected]

This email is not valid!!! as Diablos mentioned and I did confirm that today. Apparently they have no way to check it and are unsure why this email is given as an option to service members. I did the right thing and faxed my documents prior to the cut-off, DFAS received my documents prior to the cut-off, yet still messed up. She did tell me there is a chance that since she caught the error, I could see a large deposit soon, but if not, I will get those taxes back when I file. I guess we shall see. I will be sure to post an update here for everyone curious how this turns out.
 

xxWickedxx

Registered Member
#38
Hate to bump an old thread, alot of good info here. But anyways, Let says I was found unfit by the army and awarded severance pay, with a 0% rating, and also a 0% rating from the VA. My severance pay was initially taxed before I got, can I still get those taxes back or no? Also, I was discharged last year, so If I could get them back, how would I go about it? Thank you in advance.
 

NDBravehart84

PEB Forum Veteran
#39
Hate to bump an old thread, alot of good info here. But anyways, Let says I was found unfit by the army and awarded severance pay, with a 0% rating, and also a 0% rating from the VA. My severance pay was initially taxed before I got, can I still get those taxes back or no? Also, I was discharged last year, so If I could get them back, how would I go about it? Thank you in advance.
Yes you can... Call DFAS, IRS... I guess I would depend how much money... But Taxes on 0% is ZERO!!! :confused:
 

Warrior644

PEB Forum Veteran
Registered Member
#40
Hate to bump an old thread, alot of good info here. But anyways, Let says I was found unfit by the army and awarded severance pay, with a 0% rating, and also a 0% rating from the VA. My severance pay was initially taxed before I got, can I still get those taxes back or no? Also, I was discharged last year, so If I could get them back, how would I go about it? Thank you in advance.
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!
 
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