There are two new tax laws some veterans need to know about this year. One is the 'Combat-Injured Veterans Tax Fairness Act of 2016.' Under federal law, Veterans who suffer combat-related injuries and who are separated from the military are not supposed to be taxed on the one-time lump sum disability severance payment they receive from the Department of Defense (DoD). More than $78 million is owed to an estimated 14,000 Veterans. This law corrects this problem by instructing DoD to identify Veterans who were taxed in order for them to file an amended return to receive their money back.
For more tax season guides and tips, visit the Military.com Tax section.