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Congress passes bill to recover taxes paid by injured vets

Released 12/13/16 at Northwest Arkansas Democrat Gazette | Tags:

The U.S. Senate passed a measure over the weekend that supporters say will return money to the pockets of more than 150 combat-injured veterans in Arkansas. The Combat-Injured Veterans Tax Fairness Act of 2016 directs the U.S. Department of Defense to stop taxing the severance payments of veterans who sustained service-ending combat injuries. Under federal law, those payments should not be taxed, but about $78 million in taxes have been levied due to problems with the Defense Department's automated payment system, according to the National Veterans Legal Services Program.

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