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While the info is ‘correct’ the mechanism is flawed. While the military LES may show a difference between disability award and payout, that isn’t a solid tax document to do the corrective action on the tax return. Some who exit the military have the DD214 clearly showing the withholding for taxes, but not all.  Apparently DOD doesn’t bother to determine which departing service members’ medical severance award would be taxable or not and, typically, are withholding taxes from all.  DOD also has a mechanism for requesting repayment by DOD, but with time constraints (15 Dec of the year of payment.  That may work whose awards are received earlier in the calendar year, but not for those who get their payment late in the year.

What other documents have TT users had clearly showing the withholding to support the recovery via the tax return.