The IRS announced recently that certain veterans who received disability severance payments after Jan. 17, 1991, and included that as income when they filed their income tax returns the following year, should file a Form 1040X, Amended U.S. Individual Income Tax Return, to claim a credit or refund of the overpayment attributable to the disability severance payment.
This is a result of the Combat-Injured Veterans Tax Fairness Act passed in 2016.
Most veterans who received a one-time lump-sum disability severance payment when they separated from their military service will receive a letter from the Department of Defense with information explaining how to claim tax refunds they are entitled to. The letter includes an explanation of a simplified method for making the claim.
The IRS worked closely with the Department of Defense to produce the letter, explaining how veterans should claim the related tax refunds.
Veterans eligible for a refund who did not get a letter from DoD should visit the Defense Finance and Accounting Service (DFAS) and IRS websites for more information.
If you have received this letter and you would like an appointment, bring your entire tax return (federal and state if there is a state return) with all of the supporting documents used to prepare that return. Also, bring a copy of the DFAS letter to the Fort Sill Legal Assistance Office.
Appointments will be provided on a first-come, first-served basis free of charge for those who are authorized to use the Fort Sill Legal Assistance Office.
Do not call to make an appointment due to the need to have the paperwork on hand to prepare your amendment as quickly as possible to submit before the year deadline has passed.
You may also use a paid tax preparer of your choice, such as a certified public accountant or low income taxpayer clinic.
The Fort Sill Income Tax Assistance Center is available to service members, retirees, and their family members with valid military identification.
A legal representative filing on behalf of an eligible service member, retiree, or family member may also file on a decedent's behalf.
Taxpayers should ensure they have all their information before filing a tax return including a copy of their prior year's tax returns if possible.
For more information, call the Fort Sill Income Tax Assistance Center at 580-442-6445/8819.
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