Posted on Mar 20, 2016
Pentagon erroneously withheld $78 million from injured veterans over 25 years
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The Pentagon has been deducting money erroneously from combat-wounded veterans’ severance pay for 25 years, an error officials knew about for years and that might have affected upwards of 13,000 troops, according to lawmakers and a veterans advocacy group.
Now lawmakers are trying to return the money — estimated to be $78 million — through a bi-partisan bill introduced Thursday.
Federal law prohibits taxation of the lump sum disability severance paid to troops who separate from service after combat-related injuries. But the pay system used by the Department of Defense has been automatically deducting taxes from those payments since 1991, according to a joint statement from the National Veterans Legal Services Program and Sens. John Boozman, R-Ark., and Mark Warner, D-VA.
Now lawmakers are trying to return the money — estimated to be $78 million — through a bi-partisan bill introduced Thursday.
Federal law prohibits taxation of the lump sum disability severance paid to troops who separate from service after combat-related injuries. But the pay system used by the Department of Defense has been automatically deducting taxes from those payments since 1991, according to a joint statement from the National Veterans Legal Services Program and Sens. John Boozman, R-Ark., and Mark Warner, D-VA.
Pentagon erroneously withheld $78 million from injured veterans over 25 years
Posted from stripes.com
Department of Veterans Affairs (VA)
Injuries
Disability
Posted >1 y ago
Responses: 7
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SSG Eddie “JD” Brown
Damn right they knew it! Hell ive said before and say again Convicts dont uave to fight and dig and claw for help, education or medical treatment they simpmy get it some without asking even! Hell even before illegals get kicked back they get mri's and dental work to include surgeries all free they wont get returned for being here illegally without being treated fully for any injuries shit i wished i could go to mexico and get same thing or canada or hey Belize id be gone tomorrow! ;)
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Sgt David G Duchesneau
SSG Eddie “JD” Brown - You are right Brother! Freaking DOD and the current Administration really suck! The bastards!
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COL Mikel J. Burroughs at least lawmakers are trying to return the money — estimated to be $78 million — through a bi-partisan bill introduced Thursday. This is weird and unacceptable in my opinion. Its always something with the good ole DOD.
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I always thought it was interesting how the medical separation pay was being taxed. This would be a nice fix for those impacted.
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