Payments under the Veterans Affairs Department's compensated work therapy program are no longer are taxable, and disabled veterans who paid tax on these benefits in the past three years now can claim refunds, the Internal Revenue Service (IRS) said recently. Recipients of the payments will no longer receive a Form 1099 from Veterans Affairs. More than 19,000 veterans received compensated work therapy in Fiscal Year 2007. The program provides assistance to veterans unable to work and support themselves.
To learn more about military taxes, visit the Military.com Tax Center.
Some Payments Ruled Tax-Free
Week of December 24, 2007
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