Combat-Disabled Veterans May Receive IRS Refund

September 27th, 2018 Veterans Benefits
Soldiers in combat

The United States Internal Revenue Service (IRS) recently announced some combat veterans may be due a refund for taxes applied against their disability severance payments over a 15-year period. A detailed article on this announcement is available here.

According to a recent press release, approximately 140,000 combat-injured disabled veterans may be due a refund. In the release, the IRS states combat veterans who received disability severance payments between 1991 and 2016, and filed that payment as income, may be entitled to a refund. Combat-disabled veterans who are eligible for this refund should expect to receive a letter from the IRS.

What Happened?

Between 1991 and 2016, the IRS taxed the disability severance payments of combat veterans, and mistakenly filed those benefits as income. The Combat Injured Veterans Tax Fairness Act of 2016 corrected this issue.

How Can You Collect?

Combat-disabled veterans who are eligible must act quickly, as they only have one year from when they receive their letter to file for their refund. They also need their original tax documents from when the severance payment was claimed. Veterans who no longer have their original paperwork can still qualify for the following standard refunds:

  • $1,750 for veterans who received disability severance from 1991-2005
  • $2,400 for veterans who received disability severance from 2006-2010
  • $3,200 for veterans who received disability severance from 2011-2016

The legal estates of those combat veterans who are now deceased can also receive refunds, provided their court-appointed representatives file for them. All combat-disabled veterans eligible for the refund will need to fill out IRS form 1040X.

We Can Help

If you are disabled and unable to work, call Disability Attorneys of Michigan for a free confidential consultation. We’ll let you know if we can help you get a monthly check and help you determine if any money or assets you receive could impact your eligibility for disability benefits.

Disability Attorneys of Michigan works hard every day helping the disabled of Michigan seek the Social Security Disability and Veterans Disability benefits they need. If you are unable to work due to a physical, mental, or cognitive impairment; call Disability Attorneys of Michigan now for a free consultation at 800-949- 2900.

Let Michigan’s experienced disability law firm help you get the benefits you deserve.

Disability Attorneys of Michigan, Compassionate Excellence.

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Professional, knowledgeable, timely and always responsive. All phases: reception desk, associates, my Lawyer (Randall Mansour) were nothing short of perfect! The greatest choice I made in filing for and winning my disability case was choosing Disability Attorneys of Michigan!

- Mark R.