Combat Injured Vet Tax Fairness Act 2016

josephk

PEB Forum Veteran
Registered Member
Couldn't figure out where this should go, but I thought it would applicable to most of us here.

Received the letter from DFAS/IRS stating that I need to file an IRS form 1040x to recoup taxes paid on my severance pay when medically discharged. As if there weren't enough hoops to jump through to achieve this, I live outside of the US (wife is still AD) and requesting a copy of the tax return transcript requires a stateside mobile number. I tried contacting the 800 number listed but they only go back to 2014 tax year.


Anyone else dealing with this? I mean, I could do it the simple way and file for the standard claim of $2400, but that is about $1900 shy of what I paid in taxes ($43xx total)
 

TDWilliams

PEB Forum Veteran
Registered Member
i received it as well, gotta find my tax return from that year to see. Will update you when I start the process.
 

usaircav

Registered Member
Wonder if the VA will attempt to recoup some more money from my monthly disability compensation pay since I'll be getting my previously withheld taxes back...
 

usaircav

Registered Member
Couldn't figure out where this should go, but I thought it would applicable to most of us here.

Received the letter from DFAS/IRS stating that I need to file an IRS form 1040x to recoup taxes paid on my severance pay when medically discharged. As if there weren't enough hoops to jump through to achieve this, I live outside of the US (wife is still AD) and requesting a copy of the tax return transcript requires a stateside mobile number. I tried contacting the 800 number listed but they only go back to 2014 tax year.


Anyone else dealing with this? I mean, I could do it the simple way and file for the standard claim of $2400, but that is about $1900 shy of what I paid in taxes ($43xx total)
I'm in the same boat...well, almost...I'm in Texas. ETSed in 2002, so there is no way that I can get an IRS Transcript from back then. Plus, I shouldn't be expected to keep a copy of my Federal Tax Return for 16 years!

I reached out to DFAS to request a copy of both my W-2 from 2002 (since all of my employment in that year was DoD-related...Active Duty, NAF, AAFES) as well as the Disability Severance Payment voucher, which was issued about 30 days after my last LES. Go to https://corpweb1.dfas.mil/askDFAS and select Military LES Requests.
 

josephk

PEB Forum Veteran
Registered Member
Anyone have/find a good POC number for the IRS in order to request the tax year in which I/we were discharged? I am currently in Japan, so I would be extremely grateful for an 800 number
 

Cassdw70

PEB Forum Veteran
Registered Member
Couldn't figure out where this should go, but I thought it would applicable to most of us here.

Received the letter from DFAS/IRS stating that I need to file an IRS form 1040x to recoup taxes paid on my severance pay when medically discharged. As if there weren't enough hoops to jump through to achieve this, I live outside of the US (wife is still AD) and requesting a copy of the tax return transcript requires a stateside mobile number. I tried contacting the 800 number listed but they only go back to 2014 tax year.


Anyone else dealing with this? I mean, I could do it the simple way and file for the standard claim of $2400, but that is about $1900 shy of what I paid in taxes ($43xx total)
Yes, the same here (mine is because I have an off carrier for my cell service). I just requested my access via good old snail mail. Mine is worth it, because my taxes were more like $16k. Definitely not going to do the "automatic" thing, but have Zero Clue where my 2002 tax return is...LOL
 

josephk

PEB Forum Veteran
Registered Member
JEEBUS!!!! 16k in taxes daaaaannnnnngggggg

Looking forward to any info you can provide after they receive/update your paperwork.

I sent a message to the IRS accounts on twitter, see if they say anything
 

Cassdw70

PEB Forum Veteran
Registered Member
I'm in the same boat...well, almost...I'm in Texas. ETSed in 2002, so there is no way that I can get an IRS Transcript from back then. Plus, I shouldn't be expected to keep a copy of my Federal Tax Return for 16 years!

I reached out to DFAS to request a copy of both my W-2 from 2002 (since all of my employment in that year was DoD-related...Active Duty, NAF, AAFES) as well as the Disability Severance Payment voucher, which was issued about 30 days after my last LES. Go to https://corpweb1.dfas.mil/askDFAS and select Military LES Requests.
Get a copy of your C-File, the final tax payment information will be in there. The C-file has all of your personnel information and your medical stuff. I got out in 2002, as well.
 

Cassdw70

PEB Forum Veteran
Registered Member
JEEBUS!!!! 16k in taxes daaaaannnnnngggggg

Looking forward to any info you can provide after they receive/update your paperwork.

I sent a message to the IRS accounts on twitter, see if they say anything
Yeah, I literally just finished paying my recoupment in June of this year (16 years and 5 months post medical separation)! It was a pretty nice severance at the time, just wish I knew then what I know now and I wouldn't be going back through the process all over again with a PDBR.
 

Cassdw70

PEB Forum Veteran
Registered Member
Wonder if the VA will attempt to recoup some more money from my monthly disability compensation pay since I'll be getting my previously withheld taxes back...
No, because the point of this act is that you shouldn't have ever paid taxes on your disability payment if you're rated for the same condition through the VA that you are through your branch, the VA disability is non-taxable. Most people automatically get the tax break now, but back in the "good old days" there were some crazy laws where some of us fell through the cracks and that's why they've been trying to get this through congress for several years. Thank God it's finally there and the letters are flowing out! That 3 year deadline is tough to meet when you're applying for the disability through the VA and they take 3-5 years to decide and then maybe you have an appeal.
 

TDWilliams

PEB Forum Veteran
Registered Member
Yes, the same here (mine is because I have an off carrier for my cell service). I just requested my access via good old snail mail. Mine is worth it, because my taxes were more like $16k. Definitely not going to do the "automatic" thing, but have Zero Clue where my 2002 tax return is...LOL

I think I am in the same boat with them owning me a 10K+, so I will do the same. Thanks for the info.
 

josephk

PEB Forum Veteran
Registered Member
Did you just claim the standard amount for the year of separation or the exact amount you paid? If it was the exact amount, how did you go about getting all the information needed to properly fill out the amendment paperwork?
 

Perci75

PEB Forum Veteran
Registered Member
I just claimed the standard amount. I would have to repay either of the amounts anyways due to my separation changing to retired status. So it really didn't matter in my case.
 
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