WASHINGTON — The Internal Revenue Service is reminding veterans who received disability severance payments after 1991 and claimed it as income that time may be running out to claim their refund.
Veterans should take action soon if they received a notice (letters 6060-A and 6060-D) and have not already filed Form 1040X, Amended U.S. Individual Income Tax Return, to claim a refund or credit of the overpayment attributable to the disability severance payment should do so soon.
“We appreciate the service and sacrifice of our nation’s combat-injured veterans, and the IRS is pleased to help deliver refunds under this special provision,” said IRS Commissioner Chuck Rettig. “Time is running out this month for many people who qualify for this refund. We urge combat-injured veterans to take time review the provisions to see if they are eligible.”
The Combat-Injured Veterans Tax Fairness Act of 2016 provides that most veterans who received a one-time, lump-sum, disability severance payment when they separated from military service are entitled to a refund if that payment was claimed as income. The payment must have been received after Jan. 17, 1991, and before Jan. 1, 2017. Eligible veterans should have received a mailed notice from the Department of Defense in July of 2018 explaining how to claim their tax refunds.
Some veterans have yet to act
Deadlines are soon approaching as the time available for claiming these tax refunds is limited to:
- One year from the date of the Department of Defense notice, or
- Three years after the due date for filing the original return for the year the disability severance payment was made, or
- Two years after tax was paid for the year the disability severance payment was made.
Veterans claiming their refund have the normal limitations period for claiming a refund or one year from the date of their letter from the DoD, whichever expires later. As taxpayers can usually only claim tax refunds within three years from the due date of the return, this alternative time frame is especially important since some of the claims may be for refunds of taxes paid as far back as 1991. While many veterans have claimed their refunds in the past year, many others have not, and time is running short.
Two options for claiming the tax refund:
- Option 1: File a claim based on the actual amount of the overpayment attributable to your lump sum disability severance payment, or
- Option 2: Choose to claim the standard refund amount listed below that corresponds to the year the disability severance payment was made. Simply write “Disability Severance Payment” on Form 1040X, line 15, and enter the standard refund amount listed below on line 15, column B, and on line 22, leaving the remaining lines blank.
Veterans can submit a claim based on the actual amount of their disability severance payment by completing Form 1040X and carefully following the instructions. An original return is not necessary if the information for that tax year available. Veterans without the required information to complete the Form 1040X, you can request a transcript online at IRS.gov/transcript.
Option 2, claiming a standard refund amount, is the easiest way to request a refund because it does not require finding the original tax return or requesting information about the return from the IRS. It may result in a larger or smaller refund based on the actual amount from the return. The standard refund amounts are:
- $1,750 for tax years 1991 – 2005
- $2,400 for tax years 2006 – 2010
- $3,200 for tax years 2011 – 2016
Carefully follow the instructions in the notice mailed by the Department of Defense in July 2018:
- Complete and file IRS Form 1040X, Amended U.S. Individual Income Tax Return, for the tax year the disability severance payment was made
- Write either “Veteran Disability Severance” or “St. Clair Claim” across the top of the front page of the Form 1040X
- All amended returns are filed on paper, so veterans should mail their completed Form 1040X, with a copy of the DoD letter, to:
Internal Revenue Service
333 W. Pershing Street, Stop 6503, P5
Kansas City, MO 64108
Eligible but never received a DoD notice
Veterans who did not receive the notice from the Department of Defense and received a disability severance payment after Jan. 17, 1991, that was reported as taxable income, can still file a claim. They must include the necessary documentation to file with their Form 1040X. Veterans should contact the National Archives, National Personnel Records Center, or the Department of Veterans Affairs to obtain the required documentation for submission with their Form 1040X.
The IRS has posted detailed information on IRS.gov. Veterans with questions about claiming a tax refund for disability severance payment, can call the IRS toll free at (833) 558-5245 ext. 378 between 7 a.m. and 7 p.m. local time (Alaska and Hawaii follow Pacific time).
Greetings, We are proud to announce this year’s annual Women Veteran’s Career and Transitioning Seminar & Networking Reception hosted by the Sea Service Leadership Association (sealeader.org). This is a FREE event for Military Members, Veterans, and their Spouses designed to help the transitioning process for women and to obtain future/new career opportunities. We will have over 40 exhibitors (Amazon, Deloitte, USAA, Ulta, WWP, Comcast, Veterans Affairs and more) in attendance and a full day of activities to help with resumes, personal branding/LinkedIn, or promotions. We are also having a FREE reception that night so come mingle and meet with other military women and veterans and grab some free drinks!
We are hoping you will pass along the following message to your organizations members and post on your social media! We appreciate the help in advance to spread the word and we look forward to you joining us on August 21st at the Convention Center in Washington, DC. This event is the day before the Joint Women’s Leadership Symposium where over 900+active duty military women, in uniform, will be in attendance August 22-23rd. We are looking for a few volunteers so if someone in your organization is available August 21-23rd please have them send an email to firstname.lastname@example.org For more info on the Career and Transitioning Seminar see attached flyer. To register, fill out the form below.
Thanks, Reagan Cram
VA MISSION Act Provisions Expand Access to Urgent Care
On June 6, the VA began implementation of the MISSION Act, an overhaul of VA operations designed to simplify and expand veteran access to healthcare both within, and outside of, the VA.
One of the most exciting new benefits provided by the MISSION Act is the addition of urgent care and walk-in clinics located within the local community. This is a giant step forward in terms of convenience for our patients, as eligible veterans do not need to get prior VA authorization to visit an urgent care provider that has been vetted, approved, and added to the network.
This urgent care benefit is meant to give veterans a convenient way to get treatment for minor injuries and illnesses such as colds, strep throat and pink eye. To be eligible for urgent and walk-in care, veterans must be enrolled in the VA health care system and have received care through VA from either a VA or community provider within the past 24 months.
As an example of how this works, please see here: https://www.youtube.com/watch?v=Jk-eg4N29w0
Veterans can click on the following link to find urgent care and walk-in clinics in their local areas:https://vaurgentcarelocator.triwest.com/Locator/Care
For more information, or to schedule an interview with one of our MISSION Act experts, please contact the Northport VA Medical Center’s public affairs office.
Please note the following updates for the SCCVFW
Mail: SCCVFW, P.O. Box 1492, Ronkonkoma, NY 11779 (Be sure to put who the mail is going to: ie.. ATTN: County CMDR, ATTN: Quartermaster, ATTN: Adjutant)
Skype: Live: SCCVFW
Web tags: @sccvfw #sccvfw #vfw #vfwpostpride #veterans #deptofnyvfw
WASHINGTON (NEXSTAR) — A new bill backed by U.S. Army Reserves veteran Sen. Tammy Duckworth would waive the TSA Precheck fee for veterans with disabilities.
Duckworth, D-Illinois, is a Purple Heart recipient who lost both her legs in combat in Iraq, so she personally understands the problem.
“I’ve been taken into a separate room to strip so that they can see my devices,” she recalled. “It was a full pat down every single time. And for a while, they were X-raying our limbs.”
“I got a pretty thorough pat down,” Sherman Gillums, another veteran who uses a wheelchair, described. “I was very uncomfortable. It was out in public. … It got to a point where I had to file a complaint.”
Duckworth said X-rays are no longer routine, but getting through Transportation Security Administration checks at the airport is still a hassle and it’s time to make it easier for those who have served.
“I figure if you’ve been wounded in the defense of this country, you probably should be given a little bit of a break,” she said.
TSA Precheck allows approved flyers to speed through security without waiting in line or pat downs. But it costs money: $85 for a five-year plan. Duckworth’s bill would waive the fee for about 300,000 veterans with disabilities.
“I think it’s the right thing to do,” she said. “Many of our veterans are unemployed, especially our disabled veterans, and they need a little bit of a help.”
“We want those men and women to get out of their house and see the world if that’s their desire and for the world itself to be more accommodating,” said Gillums, who’s with veteran service organization AMVETS.
A veteran of the U.S. Marines, he was paralyzed 17 years ago during a training exercise.
“In this small way, there’s a chance to show veterans that they’re appreciated,” he said. “It’s not a lot to ask to spend a little more on the people who suffered loss at the hands of defending freedom.”
Duckworth said her bill has bipartisan support. She hopes it will pass Congress by the end of the year.
Good evening —
I hope that you are all having a nice weekend.
A few updates tonight:
(1) I’ve received several emails asking whether Secretary Wilkie’s stay of Blue Water Navy claims until January 1, 2020, means that Blue Water Navy Veterans “should not bother filing or re-opening a claim” until that date arrives.
The answer to that question is a resounding NO!
Please do not delay in pursuing these claims. If you wait to file until January 1, 2020, then you will wind up losing several months of payments if the claim is granted. File now and preserve the earliest possible effective date for the claim.
(2) The VA issued a press release late in the afternoon yesterday concerning claims filed under the Blue Water Navy Act.
This press release confirms that when the VA does begin processing claims filed under the Blue Water Navy Act, two categories of claimants will receive priority in claims processing: Veterans over the age of 85 and Veterans who have a “life-threatening illness.”
Here is a link to the press release:
(3) Many of you have asked how the VA will calculate the effective date for Blue Water Navy Veterans whose original claims were denied.
The VA just released a “Fact Sheet” regarding Blue Water claims. Of particular interest is the following language:
“Presumptive Agent Orange conditions granted for Blue Water Navy Veterans may be retroactive to the date VA received your original claim. If you had a previously denied claim and you resubmit your claim, the effective date will be determined on a case-by-case basis.”
With this language, the VA appears to be opening the door to granting at least some re-opened Blue Water cases back to the original date of claim.
We do not yet know what rationale the VA will use to grant or not grant these retroactive payments. This language is from a VA-issued fact sheet, not from a law or regulation. However, it at least keeps the door ajar for at least some of these cases to be granted back to the effective date of the original claim.
(4) Lastly, please remember that under 38 C.F.R. 3.156(c), if a claim is re-opened with military records that the VA did not consider when adjudicating the original claim, the effective date of that re-opened claim is always the original date of claim.
The Blue Water Navy Act has no effect on this regulation. Therefore, if you can provide relevant military records that the VA failed to consider when deciding the original claim, and you are successful in winning the re-opened claim, then the VA should establish the original date of claim as the effective date, regardless of whether this re-opened claim is for a Blue Water Navy Veteran.
Please let me know if you have any questions. I will continue to provide more updates as new information becomes available.
Thank you, as always, for everything that you do.
Deputy Director for Program Development
New York State Division of Veterans’ Services