Injured military veterans could be owed a tax refund following a US Department of Defense money mistake. f you received a disability severance payment between 1991 and 2016, you could be owed a hefty tax refund.
The Defense Department may have withheld taxes on disability severance payments it should not have. After that error was brought to light, Congress passed the Combat-Injured Veterans Tax Fairness Act of 2016, which instructed the DOD to make good and notify those who are owed money. https://www.congress.gov/bill/114th-congress/house-bill/5015
Impacted veterans should expect to receive a letter in the mail from the DOD detailing their options in the coming weeks.
https://www.irs.gov/individuals/military/combat-injured-veterans-tax-fa…
https://www.irs.gov/newsroom/veterans-owed-refunds-for-overpayments-att…
US Senator Mark Warner (D-Va.) announced that taxes were withheld due to the limitations of DOD's automated payment system. More than 133,000 veterans could have been impacted if they didn't catch the error at the time they originally filed.
