From http://www.militarydisabilitymadeeasy.com/doddisability.html#medsephow is severance pay calculated??
I've seen that one and I've seen something different on dfas websiteFrom http://www.militarydisabilitymadeeasy.com/doddisability.html#medsep
"DoD Disability for Medical Separations
If the service member is given a Total Combined Military Disability Rating of 0%, 10%, or 20%, he is medically separated from the military.
All medically separated service members receive a single lump-sum severance payment for their DoD Disability. This payment is equal to 2 months of basic pay for each year of military service he gave. The minimum number of years is 6, so even if he only served for 2 years, his payment would be calculated as though he had served for 6 years. The maximum number of years is 19. Before January 28, 2008, the maximum was 12 years, and the minimum 3.
So, if Bob’s basic pay is $1,000/month and he served for 10 years, then his DoD Disability Severance Pay would be $20,000 (2 months: 2 x 1,000 = $2,000; for 10 years: 2,000 x 10 = $20,000).
Medically separated service members are not given any other benefits for their DoD Disability."
Great post,@Keya10 Taxes will be withheld at the 25% tax rate for federal, if you are rated by the VA for the same condition, then you can request a tax refund from DFAS.
I have no issues posting information here on the forum more than once, but please be mindful that many answers to the questions that you have asked lately can be found with a simple search here.
This link below has instructions on how to get your severance taxes withheld back from DFAS.
https://www.dfas.mil/dam/jcr:e3acbee9-3f9f-494d-af60-bcc03142343c/GP ST Clair Decision1.pdf
Right now your base pay should be $2125.80, if you multiply that times two, then multiply that by how many years you have served (fractional, take the days and divide by 360) that will be your severance amount.
Here is an example: Lets say you have served for 3 years, 4 months and 10 days (1195 days), divide that by 360, you come up with 3.32 years.
So you take $2125.80 x 2 x 3.32 and you get $14,115.31, 25% of that is $3528.83, that would be the amount taxed if you served for 3.32 years.
Yes, it is a fractional calculation, the minimum is 3 years or 6 years (if combat related). They do not round up or down.Great post,
Now question. They take the fraction of the days (lesser than 6 months)?
I was under the impression that they round up to the next year if you are +6 months and round down to the last year if you are -6 months