Some good news for wounded warriors in Virginia and around the country. The Department of Defense recently announced that up to 133,000 veterans who were wounded in the line of duty may qualify for a federal tax refund, thanks to legislation we passed back in 2016.
For years, many wounded combat veterans had their disability severance pay improperly taxed because of a technical glitch in the Pentagon computer system.
When I found out about this, I teamed up with my friend Senator John Boozman, a conservative Republican from Arkansas, and we worked together to pass the Combat-Injured Veterans Tax Fairness Act, which President Obama signed into law. Of all people, these veterans deserved to be treated better by their government, and I am glad that they will finally have the opportunity to claim money that is theirs.
For more information on the bill, check out the Daily Press article below. If you’re a veteran whose severance pay was taxed after you were wounded in action, I encourage you to file for a refund.
The Defense Department this month will begin notifying more than 133,000 combat-injured veterans who may qualify for a federal tax refund based on their disability severance pay.
That’s because the federal government improperly withheld taxes on these payments for years, said Warner, who co-sponsored legislation to address the problem.
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Veterans separated from the military after a combat-related injury should not be taxed on the one-time lump sum disability severance payment they receive from the Defense Department, according to federal law.
“However, for years, DOD improperly withheld taxes on these payments from thousands of qualifying veterans, who were typically unaware that their benefits were being improperly reduced,”.
He blamed it on a technical glitch in the Pentagon’s computer system
The payments at issue go back to January 1991, Warner said.
Sen. John Boozman, R-Ark., on legislation requiring the department to identify these veterans, determine how much they are owed and notify them. Eligible veterans will have one year after receiving notice from the Defense Department to file a claim for the refund.
Mike Boehme, Virginia commander for the Veterans of Foreign Wars, urged veterans who receive the notification letter to follow the instructions and file an amended tax return to receive the refund.
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