If I've already received my taxed portion of disability severance pay back from DFAS, how do I account for the entire amount (100%) of severance pay on my taxes? DFAS included the entire amount as income on my W-2, even though they refunded me the withheld 25% during the same calendar year (because the disability I was separated for was VA-rated as service-connected immediately following separation). TurboTax thinks I owe a lot of money because of this.. How do I fix this?
