July 16, 2018
More than 130,000 U.S. veterans who were released from service due to injuries sustained in combat are due substantial federal income tax refunds because of a Department of Defense error that stretched on for decades.
For 25 years, between 1991 and 2016, a computer glitch at the agency caused non-taxable disability severance payments to be subject to income taxes, a Defense Department official told CBS MoneyWatch. The government is now trying to help veterans or their survivors recover these old overpayments, each of which is expected to result in refunds of $1,750 or more.
The full story explains how affected veterans can claim refunds due to them.