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More than 133,000 vets may qualify for this tax refund windfall

Released 2/1/18 at Military Times | Tags: Congressional Legislation

More than 133,000 veterans may qualify for a refund of federal taxes they paid on disability severance pay dating back to 1991 ― taxes that shouldn’t have been collected in the first place.

These refunds, which are the result of a law passed in 2016, apply to veterans who received this pay dating back to Jan. 17, 1991, with taxes withheld, and who also qualified for disability from the Veterans Affairs Department. President Obama signed into law legislation supported by the National Veterans Legal Services Program, to ensure that veterans who suffer service-ending combat-related injuries are not taxed on the severance payment they receive from the Department of Defense.

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