IRS Says Some Veterans Eligible for Tax Refund
The federal government is encouraging 130,000 eligible veterans to apply for a refund on taxes they paid on disability severance payments. The Defense Finance and Accounting Service and the Internal Revenue Service sent letters to eligible veterans this month.
The IRS says if you’re eligible, you must complete and file IRS Form 1040X for the tax year the disability severance payment was made and follow the instructions in the notice mailed to you.
If you did not receive a notice you can still file a claim. The refunds are the result of the Combat-Injured Veterans Tax Fairness Act of 2016.