By Ron Perry, AW2 Finance Advisor

The deadline for eligible servicemembers, Veterans, and their beneficiaries to apply for Retroactive Stop Loss Special Pay (RSLSP) has been extended to March 4, 2011, allowing personnel more time to apply for the benefits they’ve earned under the program’s guidelines. This effects servicemembers who have not yet filed for RSLSP and had their enlistment involuntarily extended due to Stop Loss between September 11, 2001, and September 30, 2009.

Eligible servicemembers or their beneficiaries may be entitled to $500 per month for each month they were involuntarily extended on active duty by Stop Loss authority between September 11, 2001, and September 30, 2009.

Stop Loss payments are subject to federal and state taxes in most cases. DFAS will not have all W-2s or 1099s delivered until the end of January or early February. Recipients of Stop Loss payments should consider waiting until they receive their W-2s or 1099s before filing their federal and state taxes in order to avoid the need to file an amended return.

If a servicemember needs more information or meets eligibility criteria and would like to submit a claim, they should visit the U.S. Army Retroactive Stop Loss Pay Website before March 4, 2011, to be guaranteed payment. By law, there is no authorization to make payments on claims that are submitted after March 4, 2011.