Taxing military severance pay question?

Question

I have a question now i will TRY to make this as understandable as humanly possible. you get out of military with a severance pay based on a disability they are not supposed to tax it by law, but get away with it because technically you are not disabled until the va gives you the paperwork saying you were disable but i think they only do that until AFTER you leave the military in which case the irs can tax you severance pay and force you to go through pain to get it back in hopes that you give up all together trying to get back whats rightfully yours in the first place so that they can keep it. You are force to wait on there time, send them proof of injury with the va certificate which now you have to wait on va time then after you get all your taxes and dd214 , and va form and all that stuff you send to the irs letting them know whats going on and wait even longer.... now to avoid all of this is there a way that i can get a va rating a veteran form before i even get out so that i can get my severance pay none taxed to avoid the horse games the government wants to play?

Update:

Sorry about the grammar. I am meaning to say, is there anyway that I can get a rating from the va in order to avoid getting my severance taxed, just so i will not have to go through all of the work to get whats been taxed.

Update 2:

I would like to do all of this before leaving the military.

? · Answer

Severance/separation pay is NOT disability pay, and that is why it is taxed.

Unless you go through a med board, there is no way to get a VA rating before you get out. And even then, the VA ratings don't become official until after you're out. And even those who do go through a med board and still receive separation pay are taxed on it.

Dennis F · Answer

How many times are you going to ask the same question?
Save your time and tell us the answer you want to hear. You are not listening to good answers that have been given. There is not chance you get to find a loophole in the system, The bueracracy has been in place to long and better people than you have found out, you can not change it or bypass it. 
Your best hope is just to work with it, not against it.

Mrsjvb · Answer

Severance pay has diddlysquat to do with being disabled nor is it a form of disability pay

? · Answer

Contact local tax attorney for actual info

NWIP · Answer

No you can't.  It takes up to 2 years to get a VA Rating, they will not touch you under you are out.

This is also WHY you take TAPS where the whole thing is explained

jeeper_peeper321 · Answer

disabilty pay is untaxable

severance pay is NOT disability pay -- so it is taxed

Trending News

Taxing military severance pay question?

6 Answers