Disability severance pay military

[Vanessa A]

The only way to get taxes withheld back is to file a tax return.  You cannot file a return prior to the end of the year.  You will need to wait to get your refund of excess taxes withheld until you file your 2019 taxes in January. 

[Carl]

There's no such thing as "disability severance pay". It's either severance pay, or disability pay. Severance pay is 100% taxable income. Period. However, in a case where disability pay was retroactive, the letter you got from the VA should give you a "retroactive back to" date. So if your severance pay was paid before that date, it's still taxable income. If paid after that date, then it "converts" to disability pay and you can treat it as such.  Finally, sometimes the letter from the VA will specifically state that it includes severance pay regardless of when that severance was paid.

[davisjaron]

Here is my problem, the VA paid over $7,000 in taxes on my disability severance pay just this past year (2019), so this will be my first tax return since it was paid, so I can't go the 1040x route. 

When I follow the instructions to report my severance pay as a negative number in other reportable income, it only calculates roughly $3,000 in my return.

How do I file this so that I receive the full amount paid in return?  I've looked everywhere and can't seem to figure it out.

The real issue here is that because this is non-taxable income, the VA is going to recoup the full amount paid to me.  Therefore if I cannot recoup the taxes improperly paid, I end up losing $4,000 out of my own pocket because the government screwed up and paid themselves extra.  Sounds like a scam to me.

[MaryK4]

Did you have other income?  Did you receive a Form 1099-R?  @davisjaron

[davisjaron]

I did not receive a 1099R.  I spoke to a CPA here on TurboTax about it as well as DFAS.  DFAS is working on the 1099R now, they somehow forgot to send it to me -_-... scam.

The TurboTax CPA told me to input the information from the 1099R or W2, then use the instructions above to report negative income.  When I tested that out, it worked.

I apprecate your help.

[Maria cason]

Can you please help me I already did my taxes how can do in amendment for my severance pay please help me

[Maria cason]

I want to do my amendment but I don’t how to do it can somebody help me ?? please

[MaryK4]

The instructions to amend are included in the link- but please note you must make sure your original return was processed by the IRS before you send your 1040X.

How do I amend my 2019 TurboTax Online return? - Community

@Maria cason

[Maria cason]

But how I do the severance pay amendment  disability like step by step if somebody can help me 

[DanaB27]

After you started your amended return, using these instructions How to amend (change or correct) a return you already filed follow the steps below:

1. Click "Federal" from the left side of your screen
2. Click "Wages & Income" on the top
3. Go to the Less Common Income and click "Show more"
4.  Scroll down to  "Miscellaneous Income" and click "Start"
5. Scroll down to "Other Reportable Income" and click "Start"
6. Enter the full amount of your severance pay (do not reduce by the income taxes withheld) as a negative number (use "minus" sign)
7.  Describe the entry as Military Severance Reclassified as Disability

@Maria cason 

[Maria cason]

And will tell me the amoun of tax i pay?

[DanaB27]

The tax you paid previously should be already entered on the previous tax return. Therefore, if entered correctly, TurboTax will show a refund of the taxes paid.

[Maria cason]

How i know how much im getting 

[JamesG1]

Is this an amendment for the current year?  A previous year? 

Were you able to prepare an amendment?

Refund would be listed on form 1040X lines 21 and 22.

[Maria cason]

2019 tax and you know how long take for get you amend tax