Do You Know a Combat Injured Veteran? DOD May Owe Money
Wyoming is home to thousands of proud veterans. Men and women who have served our country. But, if you, or someone you know received a service ending injury, the Department of Defense may owe you back taxes.
According to Beth Logan of Kozlog Tax Advisors
Many service-ending combat-injured vets were incorrectly taxed on their severance pay due to issues with the DoD's payment system. Congress passed a law allowing the IRS to accept amended tax returns even if it is more than 3 years. (This is very much like the exoneree situation.) Unlike the exoneree issue where the government made no effort to tell anyone, the DoD will be sending letters with the information. That letter is required for filing the amended return.
If you were injured in combat anytime from 1991 to 2016, Congress is allowing veterans a chance to go back and re-file their taxes, and receive the credit from their severance. The pay should have been treated as a form of workman's comp (not taxed,) but instead it was treated as a severance, and taxed as income.
Bottom line, if you did not receive your letter from the DOD and were injured in combat, you need to update your current info on the DOD website. After receiving your letter, you can re-file and collect and refunds you may have missed on. Plus, interest!
You can also, read more on this topic on Beth Logan's blog. Or, call Defense Enrollment Eligibility Reporting System (DEERS) at 800-827-1000.
Beth warned, being it is tax season now, it would be wise to wait until late April to contact anyone for tax preparation. She also advises that you use aN EA (Enrolled Agent.) To find the nearest EA, visit EAtax.org.
PLEASE! Share this with any Vets you may know. They may be entitled to some money and don't even know it.