Disability Severance Pay (DSP) Tax Refunds
If you paid taxes on your DSP, you could be due a refund.
On This Page:
The date that DSP was paid is the date used to determine if you are entitled to receive a refund for taxes paid. To obtain a refund from DFAS you must submit your request before December 15th the year DSP was paid. For example:
No Refund is Due:
- Date your DSP was paid: March 23, 2021
- Request for a tax refund on your DSP: December 14, 2022
DFAS cannot issue refunds for prior tax years. If you received your funds in prior tax year, please contact the Internal Revenue Service (IRS).
Refund Due:
- Date your DSP was paid: March 23, 2021
- Request for a tax refund on your DSP: December 14, 2021
To request a refund of paid taxes on your DSP you will need:
- A completed DD Form 214
- Veterans Affairs Award letter (in its entirety)
- Separation Orders
- Physical Evaluation Board (PEB) Proceedings Form from your applicable service
How do I Apply for a DSP Tax Refund?
To submit your request:
1. Gather the Required Documents
To understand what documents are required, see What do I need for my request to be considered? Failure to provide required documentation may result in a delayed final determination and/or a disapproved request.
2. Apply
Submit your request and required documentation via AskDFAS.
How to Submit your Request via AskDFAS:
After submitting your claim via AskDFAS, a ticket number will be emailed to you for reference and updates on your request. Please keep this ticket number until a final determination.
How Long Does it Take to Reach a Decision?
It takes approximately 60 days from the date DFAS receives your claim to process your information. If you submitted a claim more than 60 days ago, and want to check the status, visit AskDFAS.
Check the Status of Your Claim Online via AskDFAS:
Submit your AskDFAS ticket:
After submitting your claim via AskDFAS, a ticket number will be emailed to you for reference and updates on your request. Please keep this ticket number until a final determination.
Return to the Debt and Claims Homepage
Page Updated: July 7, 2023