SGT Private RallyPoint Member7430723<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?2021-12-19T13:30:06-05:00SGT Private RallyPoint Member7430723<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?2021-12-19T13:30:06-05:002021-12-19T13:30:06-05:00MAJ Ken Landgren7430818<div class="images-v2-count-0"></div>I believe DFAS has a centralized team that looks at "Out of Service Debt." I also believe they will audit your pay account for payments and debts. I don't know how aggressive DFAS will pursue repayment of your debts.Response by MAJ Ken Landgren made Dec 19 at 2021 2:55 PM2021-12-19T14:55:19-05:002021-12-19T14:55:19-05:00SGT Chris Padgett7431339<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't, he was leaving in two days with or without a stamp on paperwork. In retrospect, he wasn'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't know what happens in real life, but I'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 PM2021-12-19T20:27:59-05:002021-12-19T20:27:59-05:00SFC Private RallyPoint Member7431689<div class="images-v2-count-0"></div>A portion of your final pay will be held for any outstanding debts. If that doesn'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'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'll pay back the $10k. You'll have to file an amended tax return for the year you received the bonus to recover the taxed portionResponse by SFC Private RallyPoint Member made Dec 20 at 2021 2:15 AM2021-12-20T02:15:00-05:002021-12-20T02:15:00-05:00MAJ Private RallyPoint Member7432260<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 PM2021-12-20T12:45:29-05:002021-12-20T12:45:29-05:00MSG Private RallyPoint Member7432266<div class="images-v2-count-0"></div>Don'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 PM2021-12-20T12:52:30-05:002021-12-20T12:52:30-05:00SSgt Christophe Murphy7432293<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 PM2021-12-20T13:12:02-05:002021-12-20T13:12:02-05:002021-12-19T13:30:06-05:00