Disability Severance Pay


I received Disability Severance Pay when I left the Army and it was taxed, the recent law said I can get that back so I filed and it was approved but the IRS sent the money to child support due to the Offset on my IRS taxes. My question is that since this was money they were not supposed to take out from my Disability Severance pay and I was getting it back and since Disability pay is exempt, why or how are they able to intercept this money and not give it to me. It was Disability Severance pay, not regular severance pay, shouldnt this be exempt and if so how can I make them give it back to me? Please help as I am sure this is a timely matter if I am entitled to the money

Jim's Reply:

First up...if you're in arrears for child support, shouldn't you just let the money stay where it is and reduce your debt and contribute to the care of your children? Then...I'm not a lawyer but I'd be willing to bet that you won't find much sympathy at VA or IRS. If you're behind in child support and the money has already been applied to the arrears, I don't think you'll be seeing that again. To answer your question you'll need to consult with an attorney who specializes in income tax disputes. I'd guess that would cost you more than anything you'd get back.