u/Thrashlikeits85

Box 12 code Q for non taxable combat pay is being amended to $0.00 for every year. This directly affects box 1 “taxable income” and it seems as if I suddenly have $8,000 I need to pay taxes on retroactively from all years combined…..

I can’t find this on any LES and was told by DFAS that my original W-2s may have been correct because the customer service rep said he thinks it’s a common error with non-tax leave accrued in a combat zone being taken in a non deployment year??

I’m not really sure what to do about this or why this “mistake” was made 4 years consecutively and I cannot for the life of me find anything on an LES in the entitlement, leave, or notes section that mentions any non-tax income.

What do I do?

Long story short apparently DFAS was incorrectly paying me non taxable combat pay and now my overall taxable income for every year is messed up equaling over $8,000 all years combined. Has anybody ever experienced this? I have received zero contact from IRS or anything until getting these in the mail. How do they mess up this bad and this often? I could see one mistake but the same mistake 4 years in a row is extremely suspicious.

Update: According to DFAS this is an error involving the use of tax exempt leave accrued being used in non deployment years. Originally it was reflected as tax free income in box 12 of the W-2 and has now been amended to $0.00 on the W-2C which has incorrectly increased my “taxable income” for the years of 2022-2025. Fortunately I have screenshots of my leave if I don’t still have access to leaveweb.

Box 1 for all 4 years was amended to a higher amount due to the military incorrectly paying me non taxable combat pay in box 12 code Q.

The amount of box 12 is the difference between the “previously reported” and “correct information” in box 1 of each year.

This roughly equals $8000 over the 4 year span is this something I will have to pay taxes on retroactively? I have never been contacted by the IRS and really had no way of knowing I had filed taxes incorrect because I used the W-2 that was provided to me each year.

I served 2019 to April of this year so I’m half expecting 2019 and 2020 to show up in the mail as well. I find it extremely odd that all of these years have this same exact mistake and a vulnerable time like separation from active duty is the absolute most inopportune time to spring this on somebody but I’m not sure what to do.

I received my rating for my BDD about 3 weeks ago. The first emotion I felt was relief. “This thing is finally over”. Or so I thought. Fast forward a few days and the anxiety is back and possibly worse. I haven’t even received a payment yet I’m convinced that I will be reevaluated or reduced.
I’ve been told that the only way to get reduced is to open another claim but I’ve also seen dozens of people losing P&T after being reevaluated after receiving a decision on a BDD claim.
I’m not sure if this is my anxiety playing tricks on me or if this is a normal feeling but I’d really like to stop worrying about things that I have no control over.