Severance Pay

Anyone have luck with processing disability severance pay as tax free while still AD? Not claiming through IRS?

I’m still AD Air Force and meet criteria (will be discharged for same condition in which the VA will give compensation, not combat related).

I’ve called DFAS-HQ with no luck, gone to my local finance who state they can’t do anything without the VA award letter, which I won’t get till after separation.

I know the St Clair memo states that “DFAS has established a policy to not withhold taxes from a regular taxable payment..” for relief on the member.

Any info/experiences appreciated.
 
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Have you contacted the legal office yet? The may be able to at least forward you the form(s) required of DFAS to verify no taxes be taken out. Thats at least what my attorney told me this morning.
 
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