I checked my DD214 and the exact same amount it said I would be paid for my severance pay is exactly what I received plus the leave that I sold back and the only deductions it shows is that few hundred $ for federal and state tax...
Severance pay EAS
- Thread starter USMCE5
- Start date
The 214 will match whatever your Severance pay is because A) either the clerks copy and pasted the amount or B) it populated from MCTFS with the amount.
Also I have been out of the separation side for a while but DFAS may have updated things so that severance pay isn't taxed like it used to be. Please see below.
Under the provisions of 26 U.S.C. § 104(a)(4), and 26 U.S.C. § 104(b)(2) (D)
(4)
amounts received as a pension, annuity, or similar allowance for personal injuries or sickness resulting from active service in the armed forces of any country or in the Coast and Geodetic Survey or the Public Health Service, or as a disability annuity payable under the provisions of section 808 of the Foreign Service Act of 1980;
(2) Individuals to whom subsection (a)(4) continues to applyAn individual is described in this paragraph if—
(D)
on application therefor, he would be entitled to receive disability compensation from the Veterans’ Administration.
Yea I know that years ago I don't think the Seps codes were marked correctly so that when it went to Disbo it got taxed automatically.
I am so used to dealing with Separation pay (for those denied further service, not injury related) that I didn't even consider that the codes for those getting Severance pay (for injuries, medical etc) wouldn't be taxed.
So for anyone getting Severance disability pay (Seps code JEB1 etc) their Severance won't be taxed if DFAS/Disbo is doing what they should.
Yeah mine was JEB1 also.
Ok awesome! That means the powers that be fixed the codes that are in MCTFS so that DFAS doesn't tax it.
Congrats!
Congrats!