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Defense Has Wrongly Taxed Disabled Combat Vets For Years

Released 4/7/16 at Government Executive | Tags: Congressional Legislation, Veteran's Benefits

Veterans who had to medically retire from the military because of combat-related injuries during the last two decades have lost out on thousands of dollars in severance pay because the Defense Department improperly taxed those payments. It’s unclear how many veterans have been affected, but the nonprofit National Veterans Legal Services Program estimated it could be close to 14,000 vets who were wrongfully taxed, going back as far as 1991, for a total of $78 million in lost compensation.

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