This month the DOD will begin sending notifications to more than 133,000 veterans who may qualify for a refund of federal taxes paid on disability severance pay dating back to January 17, 1991. 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 got from the military. For years, DOD improperly withheld taxes on these payments from thousands of unsuspecting veterans, who were typically unaware that their benefits were being improperly reduced. For more details, see this Paycheck Chronicles post.