should i take Severance pay or not?

[rjv]

Thank you in advance and im sorry if this question has been asked but searching for what i need i can't find.

Im currently being separated with 13.5 years in with a DOD rating for one unfitting condition rated at 20% but have been receiving 100% since OCT 2024. I was told from the VA if Elect to take the severance they will withhold my entire 100% which would put me in a really bad spot. But then i read the entire M21-1, Part III, Subpart v, Chapter 4, Section B in regards to recoupment. I read they will only withhold 20% for my unfitting condition which is 20% =$ 346.95 until the full amount that i received is paid back and I also read they are not allowed to recoup anything else that is not related to my unfitting condition. The reason why i wanted to take the severance is to pay for my medical debt due to my back surgery i had. Im just trying to understand all this because if they took all of my pay away it would put me in a bad spot. Thanks in advance and sorry for the lengthy post.

 

[Provis]

Thank you in advance and im sorry if this question has been asked but searching for what i need i can't find.

Im currently being separated with 13.5 years in with a DOD rating for one unfitting condition rated at 20% but have been receiving 100% since OCT 2024. I was told from the VA if Elect to take the severance they will withhold my entire 100% which would put me in a really bad spot. But then i read the entire M21-1, Part III, Subpart v, Chapter 4, Section B in regards to recoupment. I read they will only withhold 20% for my unfitting condition which is 20% =$ 346.95 until the full amount that i received is paid back and I also read they are not allowed to recoup anything else that is not related to my unfitting condition. The reason why i wanted to take the severance is to pay for my medical debt due to my back surgery i had. Im just trying to understand all this because if they took all of my pay away it would put me in a bad spot. Thanks in advance and sorry for the lengthy post.

Who in the heck said they withhold the entire VA compensation amount? They only withhold the amount of the condition that you are being separated for. The reason is that you can't get paid 2 times for the same thing. So if you get $345 a month for that condition and get paid $30,000 severance for that same condition then you get 30k but going forward from VA compensation you will have $345 less of VA pay until you pay back the severance.

Also, if you hit 100% VA without calculating the 20% unfitting condition then you won't have any withholding since you would get paid 100% still without that one condition. So you can get a nice severance check and keep 100% of your VA compensation.

 

[rjv]

Who in the heck said they withhold the entire VA compensation amount? They only withhold the amount of the condition that you are being separated for. The reason is that you can't get paid 2 times for the same thing. So if you get $345 a month for that condition and get paid $30,000 severance for that same condition then you get 30k but going forward from VA compensation you will have $345 less of VA pay until you pay back the severance.

Also, if you hit 100% VA without calculating the 20% unfitting condition then you won't have any withholding since you would get paid 100% still without that one condition. So you can get a nice severance check and keep 100% of your VA compensation.

When i called the VA debt office i talked to a rep and he told me specifically that i would fore go my 100% until my severance was paid back. But i told him exactly what i read in another post you actually replied to and i didnt know if there was a regulation change in regards to this issue. Im ok with them holding that 20%-346 monthly if im able to receive that lump so and invest it and pay off some medical debt but that rep confused me in regards to all of this. But as im understanding they will only hold that 346 from my monthly compensation at 100% until the whole amount is paid back correct?

Next question i, can i apply for a tax refund for the amount that was withheld to the IRS or is this something i need form DFAS to submit?

Again thank you for the help.

 

[Provis]

When i called the VA debt office i talked to a rep and he told me specifically that i would fore go my 100% until my severance was paid back. But i told him exactly what i read in another post you actually replied to and i didnt know if there was a regulation change in regards to this issue. Im ok with them holding that 20%-346 monthly if im able to receive that lump so and invest it and pay off some medical debt but that rep confused me in regards to all of this. But as im understanding they will only hold that 346 from my monthly compensation at 100% until the whole amount is paid back correct?

Next question i, can i apply for a tax refund for the amount that was withheld to the IRS or is this something i need form DFAS to submit?

Again thank you for the help.

No clue. Search on here for that answer. That isn't in my wheelhouse.