For several decades, the government knowingly and wrongfully taxed the severance packages of many veterans who suffered service-ending combat disabilities. The total amount taken from around 14,000 veterans is estimated to be about $78 million. Both houses of Congress unanimously passed H.R. 5015, the Combat-Injured Veterans Tax Fairness Act of 2016. Once the bill is signed into law, the veterans will be allowed to file an amended tax return to get their money. The bill will also keep this from happening in the future. For more information, read the bill on the Congress.gov website.
For more tax season guides and tips, visit the Military.com Tax section.