TAXES ON SEVERANCE PAY

good question about severance. my DOS is 23 Nov and I'm in NC as well, how long did it take to get paid.
 
I was also discharged at the end of November. I think the holidays slowed my check's arrival a little, but expect it to take a few months. I received my check in mid-February. I was discharged in 2003, so they may have gotten a little more efficient since then.
 
I received severance pay when I was removed from T.D.R.L. I found out that because of the St. Clair case, severance pay for disablility is not taxable. DFAS admited they were aware of the case and finally issued my check without withholding any taxes.
 
luv2golf1983 said:
How long after you guys got out did you recive your pay? Is it on DOS?
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I am an FM'er and used to pay these packages at a base level finance office. If your seperation orders authorized disability severance pay, I would compute that with your final active duty paycheck and you would have it depostited within 3-5 days after your DOS. Being that this particular action is now being done at the AFFSC in Ellsworth, it could take a little longer.
 
TimMc said:
I received severance pay when I was removed from T.D.R.L. I found out that because of the St. Clair case, severance pay for disablility is not taxable. DFAS admited they were aware of the case and finally issued my check without withholding any taxes.
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Yeah well my disability severance had plenty taken out for taxes and no one seemed to have ever heard of the St. Claires case. Not only that but the amount showed up as taxable income which put me in a higher tax bracket (larger % to the govt.) and I got less than half of the taxes back. DFAS sucks!!
 
I have some paperwork on how to file for taxes the following year and gain most of the severance pay back. Let me see if I can find it.
 
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