Taxes

Taxes

Each year we provide millions of tax statements, such as Form 1099-R, to our customers. Some arrive in the mail and others are downloaded from myPay accounts.

Our customer service representatives are not IRS or tax experts, but we can help you prepare for the annual April tax deadline by providing you with information about what portions of your retired pay or disability payments are taxable, setting up federal and state withholding to cover your tax liabilities, and obtaining a replacement 1099-R.

To help, we’ve developed information on…

• Is Your Pay Taxable or Not?
• Federal Income Tax Withholding
• State Income Tax Withholding
• Getting Your 1099-R or 1042-S
• Correcting Your 1099-R

You may also want to visit the following links to IRS information:

• Form W-4 and Instructions
• Form W-4P and Instructions
• Tax withholding calculator
• Publication 919 How Do I Adjust my Tax Withholding?

Tax Levies and Debt Recoupments

If DFAS is served with a levy by the Internal Revenue Service because retiree owes taxes, DFAS must honor the tax levy.

 In the case of garnishments, the collection action is mandatory and any rebuttal concerning the levy must be addressed to the IRS.

Levies are continuous, and collection will run until the entire amount is either collected or the IRS informs DFAS that we are released from collecting the levy amount.

NOTE: Annuity payments are not subject to IRS tax levy collections.