DOD Letter

[rpowell01]

I received a letter from DOD Finance and Accounting, DOT and IRS all on letter head. It appears in December 2016 the POTUS signed the Combat-Injured Veterans Tax Fairness Act of 2016 into law. What this does is if you were separated from the military due to disability your severance was TAXED and it shouldn't have been taxed.  So Congress fixed it so you can get your money back.

Your injury while on active duty happened:

1 Resulted Directly from Armed Conflicts, or

2. Took place while you were engaged in extra hazardous duty, or

3. Took place under conditions simulating war, including training exercises such as maneuvers, or

4. Was caused by an instrumentality of war.

The Standard Tax Amounts are:

$1750 for tax years 1991-2005

$2400 for tax years 2006-2010

$3200 for tax years 2011-2016

The above is if you don't want to go through the hassle and call IRS to figure out how much exactly what taken out. You can just use the standard tax amounts. I recall they took approx $2400 out of my severance pay not no $1750 so I don't know where the IRS gets that from.

Anyway if you received this letter I would file to get that money back because its yours and belongs to you!!! If you haven't and you were given a severance pay and they took out taxes I would get a hold of the IRS and or the DOD to figure out why you didn't get a letter.

I'm sending my 1040X  along with a copy of the letter to IRS so lets see what happens. BTW You only have ONE YEAR FROM DATE OF LETTER TO FILE TO GET THAT MONEY BACK!!!

 

I don't know if I put this is the right topic or nor, my apologize...

 

Here is more info on the ACT:  https://www.thetaxadviser.com/news/2016/dec/injured-veterans-improperly-withheld-taxes-201615746.html

Rob

 

 

 

Edited July 31, 2018 by rpowell01

[Berta]

THANKS- I posted this news some time  ago here - 

I am glad to see that DOD is really sending out those letters!