Severance - Now What?

MN Swede

PEB Forum Regular Member
Got the severance pay, waiting on the VA to get me my percent disabled, now what? Will I be able to recoup the money that was taken out for taxes? It was disbursed in Jan of 09.

Thanks,
Shane
 
From what I uderstand you can get the money back that was paid in taxes but I am not sure how you do it. Keep in mind that to get the money and benefits from the VA youwill have to pay the severence pay back. This is normally down back them collecting the money from you VA monthly check until the amount of your severence is collected.

Shane what were you boarded for? Was it a formal or informal board that gave you the 0%?

Good luck
 
I dont think this is correct. From what I was told....DOD is taxed and VA is tax free. Im in a medical hold unit and one of our guys got his severence hit hard from taxes and his brother who is a CPA tried to get that back in his taxes and failed. You do have to pay the severance back to the VA. I still dont understand why :confused:

From what I uderstand you can get the money back that was paid in taxes but I am not sure how you do it.

Good luck
 
Taxes refund. You'll file next year and the severance is added to your income & the tax taken is added to you taxes. Then next year when you figure out your taxes, you may or may not get some or all of it back. Simple...


I dont think this is correct. From what I was told....DOD is taxed and VA is tax free. Im in a medical hold unit and one of our guys got his severence hit hard from taxes and his brother who is a CPA tried to get that back in his taxes and failed. You do have to pay the severance back to the VA. I still dont understand why :confused:


Yes VA payments are tax free. As for them collecting your 'severance package' AKA money. I to busy at the moment to look up references. But it states that you can not receive two compensations for the same thing. for instance Speration Pay and VA Payments. So three things that could happen:

A. VA holds back payment untill it reaches the amount of your severance.
B. You pay them your severance back (or a combination of both)
C. Keep severance and forget about VA (worst choice for you)
 
Thanks Xeno for the info. I will pass this on to my buddy. Ok that makes sense to me now why the VA wants the severance paid back.

Taxes refund. You'll file next year and the severance is added to your income & the tax taken is added to you taxes. Then next year when you figure out your taxes, you may or may not get some or all of it back. Simple...





Yes VA payments are tax free. As for them collecting your 'severance package' AKA money. I to busy at the moment to look up references. But it states that you can not receive two compensations for the same thing. for instance Speration Pay and VA Payments. So three things that could happen:

A. VA holds back payment untill it reaches the amount of your severance.
B. You pay them your severance back (or a combination of both)
C. Keep severance and forget about VA (worst choice for you)
 
Good stuff, but how do i determine (for a certainty) that I will/won't get the money back from taxes (over $25k so I'd like it back if possible!). I've read some of the posts on this forum, but there seems to be some uncertainty.
- 10% IPEB finding for 3 spine surgeries, went to VA rating board on 31 Jan. Had to skip Formal PEB because found job I couldn't pass up in this economy.
 
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