How to Recoup Taxes Paid on Disability
Severance pay From
the Armed Forces
IRS publications 17 (Your Federal Income Tax) & 525 (Taxable & Non-taxable Income, page 17) both state that “if you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income.” But neither publication says how.
"Many medically discharged vets, including some good friends of mine, don't know they are entitled to get the taxes back if they get a VA rating," says Dorothy, the author of this extremely important USVI veteran document.
In this informative USVI document, composed by a discharged veteran of recent years, discharged veterans awarded VA disability benefits will learn how to recoup money paid as taxes on disability
Read it here on USVI: Click Here