SGT Private RallyPoint Member 7430723 <div class="images-v2-count-0"></div>^ Upon being chaptered out of the military, if there's debt incurred through CIF and a bonus, how does finance want them paid back? 2021-12-19T13:30:06-05:00 SGT Private RallyPoint Member 7430723 <div class="images-v2-count-0"></div>^ Upon being chaptered out of the military, if there's debt incurred through CIF and a bonus, how does finance want them paid back? 2021-12-19T13:30:06-05:00 2021-12-19T13:30:06-05:00 MAJ Ken Landgren 7430818 <div class="images-v2-count-0"></div>I believe DFAS has a centralized team that looks at &quot;Out of Service Debt.&quot; I also believe they will audit your pay account for payments and debts. I don&#39;t know how aggressive DFAS will pursue repayment of your debts. Response by MAJ Ken Landgren made Dec 19 at 2021 2:55 PM 2021-12-19T14:55:19-05:00 2021-12-19T14:55:19-05:00 SGT Chris Padgett 7431339 <div class="images-v2-count-0"></div>Way back when, there was a PV1 who had a little more than 3 years in. He was the DUI king of the BN.<br />He was so bad that the battery commander had to confiscate his car.<br />Anyway, after his final DUI the chapter paperwork finally came through, I was one of several who were tasked to take him thru out processing. <br />I took him to CIF and he had about half of his TA50. Of course it was filthy, and it was rejected. His reply was take it or don&#39;t, he was leaving in two days with or without a stamp on paperwork. In retrospect, he wasn&#39;t wrong. He signed a statement of charges.<br />Two days later, he was gone. (His getting his car back was a whole other story)<br />I kinda forgot about him until a few years ago when he finds me on F/B.<br />I chatted with him briefly. He sobered up, after he did a stint in jail ad then rehab. <br />I asked him what ever became of the TA50 statement of charges. <br />The Army took what they could out of his final pay. A couple years later, he got a letter from the IRS and they withheld his tax returns for couple years and then it kinda just went away. <br />Now, those were his words. <br />I don&#39;t know what happens in real life, but I&#39;m sure the Army and the IRS will have a chat. <br />The government will get theirs. Response by SGT Chris Padgett made Dec 19 at 2021 8:27 PM 2021-12-19T20:27:59-05:00 2021-12-19T20:27:59-05:00 SFC Private RallyPoint Member 7431689 <div class="images-v2-count-0"></div>A portion of your final pay will be held for any outstanding debts. If that doesn&#39;t cover all of your debt, it will be passed to the treasury department and your IRS refunds will be confiscated every year till it&#39;s paid. I believe they also charge interest at the federal rate during that time.<br /><br />The amount you owe will be based on the pretax value of your bonus, not the amount you receive. So, if you were paid a $10k bonus and received $7,800 after 22% tax, you&#39;ll pay back the $10k. You&#39;ll have to file an amended tax return for the year you received the bonus to recover the taxed portion Response by SFC Private RallyPoint Member made Dec 20 at 2021 2:15 AM 2021-12-20T02:15:00-05:00 2021-12-20T02:15:00-05:00 MAJ Private RallyPoint Member 7432260 <div class="images-v2-count-0"></div>From personal experience (HD, not chaptered out), they take CIF from your tax refund about 2-3 years after you separate. Response by MAJ Private RallyPoint Member made Dec 20 at 2021 12:45 PM 2021-12-20T12:45:29-05:00 2021-12-20T12:45:29-05:00 MSG Private RallyPoint Member 7432266 <div class="images-v2-count-0"></div>Don&#39;t worry, Finance will get that money back via debt on your final check and Withheld Tax Return(s) Response by MSG Private RallyPoint Member made Dec 20 at 2021 12:52 PM 2021-12-20T12:52:30-05:00 2021-12-20T12:52:30-05:00 SSgt Christophe Murphy 7432293 <div class="images-v2-count-0"></div>They will require payment if money is due. Whether it’s voluntary or garnished they will get it. Response by SSgt Christophe Murphy made Dec 20 at 2021 1:12 PM 2021-12-20T13:12:02-05:00 2021-12-20T13:12:02-05:00 2021-12-19T13:30:06-05:00