Combat-Injured Veterans May Be Eligible for Tax Refunds on Disability Severance Payments
Liberty Tax reminds veterans that time for filing a claim is limited; Participating offices will file paperwork for free for affected veterans.
VIRGINIA BEACH, Va. - July 16, 2018 // GLOBE NEWSWIRE // - Liberty Tax, a leading tax preparation franchise, is reminding veterans that those who suffered career-ending combat-related injuries may be eligible for federal income tax refunds under the Combat-Injured Veterans Tax Fairness Act. These brave veterans - some who served more than 25 years ago - may be unaware that they were improperly taxed on their lump sum disability severance and are due a refund. Liberty Tax wants veterans to know about the law and the fact that time for claiming the tax refund is limited. As a service to our affected veterans, participating Liberty Tax offices will file amended tax returns for free.
"We value the service and sacrifice of the men and women who defend our country," said Liberty Tax CEO Nicole Ossenfort. "We appreciate that this law corrects a past error, and that we can be of service in helping our veterans reclaim what they are owed."
The Combat-Injured Veterans Tax Fairness Act directs the Department of Defense to identify the more than 130,000 veterans whose disability severance payments - paid after January 17, 1991 - were included as taxable income on Form W-2 and later determined to be nontaxable. The Department of Defense is mailing letters (6060-A and 6060-D) to veterans this month. Veterans who receive the letters, and those who don't but who believe they are eligible for refunds, will need to file an amended tax return. The Internal Revenue Service is expected to refund disabled veterans an estimated $78 million that was wrongly withheld from their disability severance pay.
Liberty Tax reminds veterans that time is limited to claim their tax refund. Claims must be made by the later of:
- 1 year from the date of the Department of Defense notice, or
- 3 years after the due date for filling the original return for the year the disability severance payment was made, or
- 2 years after tax was paid for the year the disability severance payment was made.
Participating Liberty Tax offices will provide assistance - at no charge - to affected veterans filing the Form 1040X Amended U.S. Individual Income Tax Return. Veterans can visit LibertyTaxVeteransHelp.com or call 877-753-1095 for more information.
Liberty Tax is headquartered in a major military region and is a proud supporter of the USO. Liberty Tax understands the challenges members of the military face when it comes to deployments, combat zone exclusions, and other complexities of the tax filing process. We also know that taxes are the last thing our military need to worry about while serving our country. That is why our professional tax preparers are trained to help veterans and active duty military members file the most accurate tax return.
Liberty Tax honors our troops and their families and thanks them for their service.
About Liberty Tax, Inc.
Founded in 1997, Liberty Tax, Inc. (NASDAQ:TAX) is the parent company of Liberty Tax Service. During tax season 2017, Liberty Tax prepared over two million individual income tax returns in more than 4,000 US/Canadian offices and online. Liberty Tax's online services are available through eSmart Tax, Liberty Online and DIY Tax. Liberty Tax also supports local communities with fundraising endeavors and contributes as a national sponsor to many charitable causes. For a more in-depth look, visit Liberty Tax Service and interact with Liberty Tax on Twitter and Facebook.
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