Which designation in block 10 on 199 entitles to a tax free severance?

[nwysong]

You can usually find anything you need by just doing a search on this forum, but with this specific question I am finding conflicting information. I was given 10D on my 199, but I can't find anywhere that specifically says that my severance will be tax free. I am completely aware that I won't have to pay it back though. Can anyone point me to where I can find a regulation or some publication that says what is and isn't tax free?

Thanks!

Nick

 

[firedawg225]

I think if i remember right, D it will get taxed but you can get it back from your taxes or request from DFAS. there are forms on the form somewhere about it. sorry i can't be more help

 

[comeback]

The attached document I got form doing a google search of "hrc da form 199 10d" I have highlighted the pertinent paragraph, and here is the relevant information

"If the service member receives such a designation the service member receives a minimum of 6 years military service for computation of severance pay and the VA will not reduce their compensation based on the military severance pay. The Army uses para 10d to designate this finding."

That means, if you get rated with a 10d, the following will happen:

* If having served less than 6 years, your severance pay will be calculated at a minimum of 6 years (e.g. serve 2 yrs, you get paid at a rate of someone who had served 6 years)
* You do not have to repay your severance to the VA, unlike someone who got severance and gets their VA pay reduced by the percentage of their severance rate (e.g. rating is 10% Army and 100% VA: normally VA would reduce the 100% rating by 10% to collect (recoup) severance on disabilities that were not combat-related or incurred in combat. BUT with a 10d-designation, you get to keep it all. No recoupment.

Congrats.