Defense Finance and Accounting Service Providing payment services for the U.S. Department of Defense. ... Taxes. Powers of Attorney/Third Party Representatives for Retirees. Disability Entitlements. ... who received a letter saying that my Uniformed Services Former Spouse Protection Act payments may be reduced by this recoupment. How much of my ...
When we recoup VSI/SSB payments, we treat it like a pre-tax deduction. That is, we reduce your taxable income by the amount we deduct for the recoupment each month. For Example: If you received a gross separation payment for $60,000 less Federal Income Tax Withholding of $12,000, you would have received a net check for $48,000. We will recoup ...
If you paid taxes on your disability severance pay, you could be due a refund. A refund is awarded in the same calendar year in which a military member received disability severance pay. To obtain a refund from us you must submit the following documents to us before December 15th if the year in which the disability severance pay was paid.
If such a designation was granted DFAS shouldnot take any Federal Taxes out of your disability severance pay. If you have the tax taken out when awardedeither a 10 a, b, or c designation DFAS has instructed that the field financeoffice is to contact DFAS at [email protected] to ensure automatic prompt refund of the withheld taxes. 3. a.
IR-2018-148, July 11, 2018. WASHINGTON — The Internal Revenue Service today is advising certain veterans who received disability severance payments after January 17, 1991, and included that payment as income that they should file Form 1040-X, Amended U.S. Individual Income Tax Return (PDF), to claim a credit or refund of the overpayment attributable to the disability severance payment.
Procedures exist for the local servicing finance office to coordinate with DFAS-Indianapolis for refund of the taxes withheld. The request and required documentation must be received at DFAS by 31 December of the year in which the severance payment was received. In the alternative, the Soldier may seek a refund when filing their tax return.
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.
DFAS is committed to making its information and communication technology (ICT) accessible to individuals with disabilities in accordance with Section 508 of the Rehabilitation Act of 1973, as amended in 1998 (Section 794d of Title 29, United States Code).
Special Separation Benefit. If you received Special Separation Benefit (SSB) and later qualify for retired or retainer pay, you will be required to repay the full gross SSB paid to date. If after receiving SSB you spend enough time in the reserves to qualify for retirement pay, you reenlist, or you are recalled to active duty and qualify for retirement pay, you may choose to retire.
list required recoupment of nondisability severance pay upon a member’s retirement. See Table 4-2 for conditions governing recoupment of severance pay received before nondisability September 15, 1981. Members who receive nondisability severance pay on September 15, 1981