Severance Pay tax info

Jamesc

Registered Member
#61
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)".
 

Jamesc

Registered Member
#62
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)".
That's exactly what mine says too! So that means its non taxable right?
 

LizzeKay

Registered Member
#63
I also faxed my paperwork before December 31st and my w2 has included the severance amount and taxes. I been trying to contact them before I filed my taxes. I knw it's usually a wait at least two months..
 

SGM Anaconda

Registered Member
#64
So as I have read these threads, you can get your severence tax free in some cases/ My case is injury occurred in Iraq(under Section V V4-Yes, will that allow me to take severence tax free? and then I am only Army rated currently at 20% if I read another post correctly the VA would only take a small portion of my VA check out to recoup? So does the V4-Yes not work for the DAV side for exempt? Just wondering
 

19DScout

Registered Member
#65
Just wanted to add, my W-2 came incorrect. The wages did not reflect my severance as non taxable. But the fed tax did. So I "owe" over $9k until I get the corrected W-2.

The correct and currents numbers and process to get a corrected W-2 are:

Fax the request to 317-275-0281, type or write "CODE TX-F" in big ass letters across the top of the request and be sure to sign it at the bottom. I included my SSN, current phone #, address and a brief description on the issue and why I needed a corrected W-2. I used www.hellofax.com which does work if finding a fax machine is a pain. I made a trial account and received my own fax #, however I never did get a confirmation back.

This process should take 14 days. Even during tax season. One week after faxing the request call 1-866-912-6488, option 1. Call early, they open at 0730 EST. Let them know you want a status update on your W-2C request. Be sure to ask to log in your file that you called. And then request them to send your request again (just as a reminder).

If this process does not meet your April 15th timeline, 2 weeks before the 15th call the IRS @ 800-829-1040. Explain why you need the W-2C and let them know DFAS is taking their time with it. Have your W-2 handy, they will need some info from it as well as an estimated wage and Fed tax amount. Then they will send DFAS a nasty gram stating they have 10 days to make it right or DFAS can be fined. (doubtful but that is what it says on the IRS website)

I hope this comes in handy for anyone needing a W-2C.

Scouts Out
 

19DScout

Registered Member
#66
W-2 has been corrected. Looks like I am completely done with my ETS now. Aside from another year of base privileges. Bittersweet.
 

Warrior644

PEB Forum Veteran
Registered Member
#67
W-2 has been corrected. Looks like I am completely done with my ETS now. Aside from another year of base privileges. Bittersweet.
All right, congratulations! :D

Indeed, maintaining a positively proactive stance enabled the completion for receipt of a W-2C for sure! Enjoy! :)

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

Best Wishes!
 

MarineChix26

PEB Forum Veteran
Registered Member
#68
I am so sorry to possibly be asking a question that was already posed, BUT I am trying to get my documentations together to send to DFAS (Cleveland) and I'm not sure exactly what should be sent (BARNEY STYLE). Please excuse my ignorance, but What should my VA award letter look like? Is that something I could generate from ebenefits? I understand that there is no verification of reciept of this paperwork so I just want to make sure I do it correctly the FIRST time. I have a wedding coming up next year and the 10K would help out tremendously! Thank you all again!
 

Warrior644

PEB Forum Veteran
Registered Member
#69
I am so sorry to possibly be asking a question that was already posed, BUT I am trying to get my documentations together to send to DFAS (Cleveland) and I'm not sure exactly what should be sent (BARNEY STYLE). Please excuse my ignorance, but What should my VA award letter look like? Is that something I could generate from ebenefits? I understand that there is no verification of reciept of this paperwork so I just want to make sure I do it correctly the FIRST time. I have a wedding coming up next year and the 10K would help out tremendously! Thank you all again!
Well, yes only if the DoVA D-RAS has completed finalizing your proposed ratings then the official VA award letter should be available within eBenefits via access my documents -> download VA letters -> select a letter from the following list or similar path.

To that extent, indeed, congratulations on your forthcoming wedding next year! :D

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

Best Wishes!
 

hymhim

Registered Member
#70
Has anyone recently faxed the required documents to DFAS IN requesting a refund on taxes taken out your Severance Pay? If so, how long was your process and is there away to check the status on line?
 

alibs

PEB Forum Veteran
#71
BUmping this and up date on me. So I got my revised W2 from DFAS in Feb 2014. After dealing with the IRS back and fort the last 10 months, they finally said, they don't have an official revised W2 on file... So back to DFAS. And DFAS told me They filed the W2s as soon as it was issued. So waiting on DFAS again. So recap... I got out in Sept 2012, it took over a year for DFAS to fix my W2 in the first place...
 

HEKETR42

PEB Forum Veteran
Registered Member
#73
I was told by my MSC that since my percentage from VA was 100 plus I will not have to pay back my severance money, does anyone be told the same or have similar outcome???? also will like to know if someone can tell me how long will take for the severance money be deposited in my bank?
 
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