Military Law

Have Military Law Questions? Ask a Military Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Military Law
This answer was rated:

I filled my taxe and the irs said that they cant refund my

severance pay because my employeer...
I filled my taxe and the irs said that they cant refund my severance pay because my employeer filled it as taxable income, what do i do now?
Show More
Show Less
Ask Your Own Military Law Question
Answered in 1 hour by:
8/2/2012
P. Simmons
P. Simmons, Military Lawyer
Category: Military Law
Satisfied Customers: 35,245
Experience: Retired Marine Corps lawyer and Veterans Services Officer (VSO) with 12+ yrs. of experience.
Verified
Thanks for the chance to help. I am an attorney with over 12 years military law experience.

Severance pay is taxable...so I am not sure I understand your question...why do you believe it is not taxable?
Ask Your Own Military Law Question
Customer reply replied 5 years ago
because it was disability severance. according to the irs publication 525, military disabilty severance pay is non taxable.
Customer reply replied 5 years ago
I also called rhe VA and they sai the same thing but no one knows who I should call or what to do
I agree, it is not taxable...did they pull out taxes? Did the military pull out taxes?
Ask Your Own Military Law Question
Customer reply replied 5 years ago
yes, the irs pulled out taxes. Then i filled taxes to fix it and 12 weeks later they sent me an letter saying they cant give it back because my employer filled it as taxable. But they always file it as taxable and the serviceman files taxes to get it back
Sorry, I have had computer problems so will send this on to someone else to assist you
Ask Your Own Military Law Question
Customer reply replied 5 years ago
okay
levr
Category: Military Law
Satisfied Customers: 30,132
Verified

Hi and welcome to Just Answer!

Military retired pay is subject to Federal taxes. If your retirement pay is based on age or length of service, it is taxable and must be included in your income as a pension on lines 16a and 16b of Form 1040 or on lines 12a and 12b of Form 1040A.

You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service. If you receive a disability pension based on years of service, you generally must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability, do not include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income.

 

The fact of being disabled by itself doesn't exclude your military retirement pay from taxable income.
However if you receive military disability pensions - that is not taxable. IRS Reg 1.122 - http://edocket.access.gpo.gov/cfr_2010/aprqtr/pdf/26cfr1.122-1.pdf provides conditions under which military disability pensions are excluded from taxable income.
For instance benefits based on a service-connected disability, VA benefits are not taxable.

 

Specifically for your issue - please clarify - are you receiving disability benefits form VA?

Which reporting form did you receive that reports these benefits? Is that 1099R? If so - please verify amounts reported in each box?


Ask Your Own Military Law Question
Customer reply replied 5 years ago
yes i receive disability from the va. I didnt retire, I was let go due to medical resons and i received a disabilty serverance check due to service connected injuries. I will pull up the papers later
That is a very complex issue and might require several additional posts and could take a considerable amount of time.
If you are thinking that I provided BAD SERVICE as you stated above - I will not continue the conversation.
Please reconsider.
Ask Your Own Military Law Question
TaxRobin
Category: Military Law
Satisfied Customers: 15,871
Verified

Hello and thank you for using Just Answer,
As a tax professional I worked by Parris Island,Ft Benning, and Hunter Army Airbase so I have dealt with this numerous times.
Your situation depends on a couple of items. First when your determination was made for disability (VA determination date more important than next) and second when the payment was made to you.

If the VA determination date was retroactive to the severance payment then this issue falls under the "St Clair Letter". Many times a service member is discharged for medical but the disability determination letter is not given till later (sometimes years). If the determination letter makes the determination retroactive, the service member goes back and files amended returns for the year(s) of previous payments that were taxable but now are not.

The 1040x is used only for a previous return that was filed and showed taxable income if the determination is just made later in the year and the tax return has not been filed yet then the correction is shown on the original return. Now a days the payment office is better at making the change quicker and the W2 correctly reflects the amount that is taxable.

Let's assume that the payment was made retroactive to a past year. A 1040X is filed with a copy of the determination letter showing the retroactive date, a copy of the calculations used to determine how much is really taxable, a copy of the original W2, and a statement citing St Clair vs US (this relates back to a service member by that name that went to tax court to be able to recoup taxes paid after the timeframe for the same).

If you have a problem with this yourself then you need to use a tax professional (you can go back where you went before but tell them you want someone that is familar with the St Clair for military). (They should know that the amount that is not taxable goes on Line 21 as a negative.)

Now all this is not used if the payment is not covered by a retroactive date on the VA. DFAS will most probably not issue you a corrected W2. I have heard of some getting one but......

You listed Texas as your state, but if you were in another state and had to pay tax on that income then wait until federal is complete and then deal with state.

 

Please just respond to me (DO NOT RATE) if I have misunderstood your situation or you want to add more info. I will continue to work with you no matter what, but a poor rating only reflects badly on me and does not address the situation.

TaxRobin
Category: Military Law
Satisfied Customers: 15,871
Verified
TaxRobin and 87 other Military Law Specialists are ready to help you
Ask your own question now
Customer reply replied 5 years ago
you hit the nail on the head. that is exactly what happened. I received the payment in Dec of 2011 but didnt get my vA paperwork until May of 2012. I went to h and r block to amend it. they filled rhe paperwork and then 12 weeks later the irs tells me that I cant get it back cause it was filled as taxable by my employeer. I even sent the the st clair letter. Now Im trying to figure out my next step. So far you are the only person I have found that completly understands what I am talking about

The only thing I can think of is the date on the VA determination letter. It must make the disability retroactive or you are not entitled to a refund. If the VA determination letter does not go back to before Dec ?,2011 then you will not get the refund. Look at the determination letter carefully. Also the % for disability, to get it all back the % would need to be 100% and the date to a day before the payment date, then you would be entitled to the full refund of the withholding.

Check to make sure the VA determination letter shows a retroactive date, check the percentages, and then if all is right don't give up. Go back to the office you went to and sit down with a preparer to go over all this. If the percentage is not 100%% it is very important to send a copy of the calculations used to show the how the nontaxable amount was determined. You can resubmit the 1040X (if the date is retroactive). The professional should also write a statement on your behalf, spelling out in simple detail all the specifics and request to know on what grounds the IRS is denying you the refund. Not just that the military reported it as taxable, but why now with the VA determination with a retroactive date, they would deny the process spelled out in the ST Clair decision.

I told you I worked outside the gates of Marine Posts and Army Bases. I can not tell you how many of these I have dealt with.

Do not give up if you have the right to the refund, but I cannot stress enough how important the retroactive date is, without that in the VA Determination you are finished.

Best wishes

Ask Your Own Military Law Question
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin
TaxRobin
Category: Military Law
Satisfied Customers: 15,871
15,871 Satisfied Customers

TaxRobin is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

P. Simmons

P. Simmons

Military Lawyer

35,245 satisfied customers

Retired Marine Corps lawyer and Veterans Services Officer (VSO) with 12+ yrs. of experience.

Allen M., Esq.

Allen M., Esq.

Lawyer

5,153 satisfied customers

Lawyer and current JAG officer.

Marsha411JD

Marsha411JD

Lawyer

1,798 satisfied customers

Licensed attorney and former Navy JAG serving ashore, afloat and at the OJAG

LawHelpNow

LawHelpNow

Attorney/Lawyer

223 satisfied customers

Relax. Let's work together. Practical solutions.

rcampione

rcampione

Military Lawyer

187 satisfied customers

Military lawyer - 5 years to the present

JAG Defense

JAG Defense

Military Lawyer

124 satisfied customers

CAPT, JAGC, USN (Retired); Former Military Judge; Specializing in Security Clearance Adjudications

Paul

Paul

Lawyer

48 satisfied customers

Oklahoma lawyer. Over 10 years in the military.

< Previous | Next >

Related Military Law Questions
I am the spouse of a retired military (army) officer. We had
I am the spouse of a retired military (army) officer. We had a 40 year anniversary on May 21,of this year One month ago he left. He took the early retirement plan at 16 years of active duty service. I… read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
My brother has been in the Army National Guard since 2007,
My brother has been in the Army National Guard since 2007, deployed to Iraq and Afghanistan, and has been diagnosed with PTSD by the VA. Can he request an MEB to be considered for medical retirement? … read more
Thelawman2
Thelawman2
Doctoral Degree
1,240 satisfied customers
I received a letter from DFAS indication they couldn't
Hi - I received a letter from DFAS indication they couldn't process my application for payment of a portion of my ex's military pension because they needed a clarifying order "by means of a formula wh… read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
I have a question about VA benefits. Specifically, pension
I have a question about VA benefits. Specifically, pension with aid and attendance … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
I'm retired military veteran drawing disability. I'm a 100%
I'm retired military veteran drawing disability. I'm a 100% disabled. shouldn't my military benefits and VA benefits account for some of my child support for example they get free medical but because … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
Does the army counsel military personal on how to transfer
does the army counsel military personal on how to transfer their retirement funds from overseas to the USA … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
My boyfriend has been in the Army for 18 years and is a an
My boyfriend has been in the Army for 18 years and is a an E-7. He recently gained emergency custody of his 16 year old daughter who has severe disabilities and he is now the sole parent/provider for … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
I retired from the army,under TERA. I am to going to reach
I retired from the army,under TERA. I am to going to reach 64 years old in December 13. and i had not seeing a recomputacion … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
I am writing on behalf of my wife (a retired Army Soldier)
Hello ma'am...I am writing on behalf of my wife (a retired Army Soldier) who has been utilizing her Post-911 GI Bill benefits to fund flight school training...in short, the VA has informed her school … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
Is there any military law or time frame to get remarry while
Is there any military law or time frame to get remarry while in the service? … read more
Ray
Ray
Lawyer
Doctoral Degree
30,190 satisfied customers
My finace' is retired from the army. He was in an automobile
My finace' is retired from the army. He was in an automobile accident. Just got out of military hospital. His friend is wanting to take him to Nigeria, where he is deployed.Can he do that. … read more
Ely
Ely
Counselor at Law
Juris Doctor
266 satisfied customers
I am a retired first servant from the US Army service dates
I am a retired first servant from the US Army service dates Aug 1972 to April 1996 , in 1990 at the start of the first gulf war I took out a whole life insurance with academy life insurance Co I pail … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
I have a debt to large DFAS for military overpayment. I have
Hello, I have a debt to large DFAS for military overpayment. I have had a very difficult and stressful time maintaining contact with DFAS to know how to repay my debt. I am looking for someone who can… read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
55,411 satisfied customers
Do you guys deal with military law expunction? no,
Do you guys deal with military law expunction? JA: Have you talked to a JAG attorney about this? Or anyone in the chain of command? Customer: no JA: Are you overseas or stateside? Customer: stateside … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
I have a military law question. I am a Veteran who was
I have a military law question. I am a Veteran who was discharged without a service connection disability even though I had a disability. … read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers
Do you think DFAS would pay former same sex partner directly
Do you think DFAS would pay former same sex partner directly if there was a court order requiring the separation of retired pay even though we weren't married? … read more
Ely
Ely
Counselor at Law
Juris Doctor
266 satisfied customers
Forgive for my question not having to do with military law.
Please forgive for my question not having to do with military law. I am trying to find out who is the Army Procurement Officer or Buyer. Phelps Composite Towers provides 110' & 150' Aerial Platform Fi… read more
Marsha411JD
Marsha411JD
Lawyer
Doctoral Degree
1,798 satisfied customers
My husband retired in November 2016 from Army Reserves. He
My husband retired in November 2016 from Army Reserves. He also served in the Navy. He turned 60 on November 29, 2016. The command listed his paperwork as retired reserves which we were told was incor… read more
P. Simmons
P. Simmons
Military Lawyer
35,245 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x