Severance pay

gsfowler

Staff Member
PEB Forum Veteran
25% federal, state varies.

You will be refunded the tax if the VA rates you for the same injury as you are getting severance for.
 

gsfowler

Staff Member
PEB Forum Veteran
So how do you find out how much would be taken out of va pay a month
I believe you stated that your severance is 20%, if so $264.02 will be withheld.

If it is 10% $133.57 will be withheld, 0% nothing.
 

danihaha

PEB Forum Veteran
Registered Member
So if I were to receive $101,136 BEFORE taxes for severance due to only 10% or 20% DoD....I could still collect a monthly check from VA minus the 10-20%??
 

danihaha

PEB Forum Veteran
Registered Member
Correct, the would withhold $264.02 or $133.57.
Thank you! That is the one thing that was never explained. I was thinking i would get nothing from VA until all the severance money was accounted for. Thats a relief!
 

Keya10

PEB Forum Veteran
Registered Member
Thank you! That is the one thing that was never explained. I was thinking i would get nothing from VA until all the severance money was accounted for. Thats a relief!
That's what I thought too until my va rep explained it to me
 

gsfowler

Staff Member
PEB Forum Veteran
Disability severance pay is a one-time lump sum payment. The amount equals 2 months of basic pay for each year of service which includes active service and inactive duty points, but the total service years cannot exceed 19 years. Additionally, the minimum number of years required for computation purposes is six years for a disability incurred in the line of duty in a combat zone, or 3 years in the case of any other member.

I do not think that $101,136 is a realistic number either, especially for someone in their mid 20s.
 
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