Wednesday, February 1, 2017 - Article by: Mortgages for Veterans - Mortgages for America -
Tax season is officially here and there is some good news for injured veterans. The "Combat-Injured Veterans Tax Fairness Act of 2016," a law that says Veterans injured in combat do not have to pay taxes on the lump-sum disability payments they received, goes into effect this year.
For Veterans who have already paid taxes on these payments, a refund is in your future. The law allows veterans to file amended tax returns and get refunds on any tax they paid on their disability disbursements from the Department of Defense (DOD). Estimates show more than 14,000 veterans paid $78 million in taxes that the IRS will refund.
The laws instructs the DOD to identify and reach out to veterans who paid these taxes so they may file an amended return and get their money back.
For more information on this refund, visit http://www.blogs.va.gov/VAntage/34472/tax-season-officially-opens-jan-23/
Here are a few other important tax matters of which veterans should be aware:
For more information on tax and other veteran benefits, join eBenefits.va.gov, a web site run by the U.S. Department of Veteran's Affairs and the Department of Defense.
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