Severance pay

Keya10

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does anyone know how much the severance pay is taxed
 
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.
 
So how do you find out how much would be taken out of va pay a month
 
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.
 
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%??
 
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!
 
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
 
101,136? That doesn't seem right to me... I was told about 10k not 100k! lol
 
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.
 
101,136? That doesn't seem right to me... I was told about 10k not 100k! lol

How long have you been in? Your severance is base pay × 2 × yrs in.
So for me its 3612 x 2 x 14.
Someone correct me if im wrong pls.
 
And that is before taxes are withdrawn. (And im mid 30s...ive been in for 14 years.)
 
And that is before taxes are withdrawn. (And im mid 30s...ive been in for 14 years.)

That would be accurate for you, since you have served for 14 years, the OP is 25 and the respondent to you is young too.
 
That would be accurate for you, since you have served for 14 years, the OP is 25 and the respondent to you is young too.

Oh okay. I was starting to panic that i was "mathing" wrong or told more wrong info. Haha
 
That makes sense, Its a whole different ball park for me as an E-4 and 4yrs in.
 
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