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DMarkM1
Expert Alumni

Disability severance pay military

As @PattiF mentions above, you will need to follow these steps to enter your military disability severance pay:

  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. Enter the full amount of your severance pay (do not reduce by the income taxes withheld) as a negative number (use "minus" - sign)
  6. Describe the entry as Military Severance Reclassified as Disability

 

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Disability severance pay military

So even if I didn't receive a w2 or a 1099r I still make a negative entry?  Where do I enter the amount that was withheld based on the letter I received from DFAS? 

gloriah5200
Expert Alumni

Disability severance pay military

@MikeyVan1980-

You would generally receive the DD214 showing the amount of severance pay and the amount of withholding on it along with a W-2 including that money and withholding along with the income and withholding you received for the remainder of the year of work.

 

What you are doing is trying to get back the severance withholding by subtracting that amount from your W-2 and the remainder of the withholding goes into your return to cover taxes on taxable income.

You are right, if you did not get a W-2, then how can you claim a reduction of military income and refund of the severance pay withholding?

 

You need to talk to someone at the military and ask them about your W-2.

 

Were you working the first part of the year before you began getting the VA payments?  It could be that they gave you the severance pay already through VA.  Look to see how much federal withholding was taken our for the severance pay reported on the DD214.  You may not have any money at the IRS to get back....Talk to the military payroll people and ask them to look into it.

 

 

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