I successfully made a written appeal for a V3/V4 Code for my 20% DoD / 100% P&T VA ratings. Does anyone know if taxes will still be withheld from my severance?
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V3/V4 Code Severance and Taxes - Successful Appeal
- Thread starter Turtlemomplusthree
- Start date
In July you said, "Received my ratings lightning fast (Army). I am 20% DoD / 100% P&T VA. " Is your DoD 30% or more now due to your successful appeal or did it remain the same percentage?I successfully made a written appeal for a V3/V4 Code for my 20% DoD / 100% P&T VA ratings. Does anyone know if taxes will still be withheld from my severance?
Ron
Sir, still 20%, I appealed the lack of V3/V4 code which was successful. In my situation, 20% with 100% is financially much better, as my spouse is AD and over 20 years, so TRICARE will not be an issue as I will have his. My severance pay will be approximately 225K, and with the V3/V4 code there will be no recoupment.
Hello,
I have no clue as to the importance of those codes, but I suspect you are talking about combat related disabilities. (I am not a disability retiree.)
However...
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35
350504. Taxability and Withholding
A. General. Disability severance pay is normally taxable income. However, it is not subject to tax withholding or reporting if at least one of the following two conditions exists:
1. The entitlement resulted from combat-related injury or illness, as determined by the Secretary of the Military Department concerned, which happens as a result of any of the following activities:
a. As a direct result of armed conflict;
b. While performing extra-hazardous service, even if the service does not directly involve combat;
c. Under conditions simulating war, including maneuvers or training; or
d. By an instrumentality of war, such as weapons; or
2. The member is entitled to disability compensation as determined by the VA or has received a proposed disability rating from the VA at the time of separation through the Integrated Disability Evaluation System.
B. Withholding Taxes. Income taxes are withheld from all payments of disability severance pay unless the member qualifies for an exemption under subparagraph 350504.A [above]
Ron
I have no clue as to the importance of those codes, but I suspect you are talking about combat related disabilities. (I am not a disability retiree.)
However...
DoD 7000.14-R Financial Management Regulation Volume 7A, Chapter 35
350504. Taxability and Withholding
A. General. Disability severance pay is normally taxable income. However, it is not subject to tax withholding or reporting if at least one of the following two conditions exists:
1. The entitlement resulted from combat-related injury or illness, as determined by the Secretary of the Military Department concerned, which happens as a result of any of the following activities:
a. As a direct result of armed conflict;
b. While performing extra-hazardous service, even if the service does not directly involve combat;
c. Under conditions simulating war, including maneuvers or training; or
d. By an instrumentality of war, such as weapons; or
2. The member is entitled to disability compensation as determined by the VA or has received a proposed disability rating from the VA at the time of separation through the Integrated Disability Evaluation System.
B. Withholding Taxes. Income taxes are withheld from all payments of disability severance pay unless the member qualifies for an exemption under subparagraph 350504.A [above]
Ron
Last edited:
Sir, yes I am. The codes are annotated on Section V of the DA 199, thus referred to, in the Army, as V Codes. V3 is under conditions simulating war. Thanks, it looks as if there will not be withholding.
Thank you for the explanation and congrats on the tax situation.Sir, yes I am. The codes are annotated on Section V of the DA 199, thus referred to, in the Army, as V Codes. V3 is under conditions simulating war. Thanks, it looks as if there will not be withholding.
Ron
I also have no recoupement on my severance. However, I just received all $$ and taxes were indeed withheld. I likely am in somewhat of a similar ball park as you are. My severance is not as much as yours, but it is close. I am completing my letter and documents needed for taxes to be given back, lets hope it goes well.I successfully made a written appeal for a V3/V4 Code for my 20% DoD / 100% P&T VA ratings. Does anyone know if taxes will still be withheld from my severance?