New law allows injured veterans to recoup erroneous severance taxes.

FYI,

The attached article outlines the latest change in the law that governs DFAS and the military taxing medical separation from the service due to COMBAT Related injuries sine 1991.  Anyone that was separated from the military due to a combat related injury since 1991 was taxed by DFAS at the 25% rate, and they should NOT have been, congress has ordered DFAS to contact the various veterans and inform them how to seek relief.  We also need to keep in mind that the VA sometimes recouped the money that was severance pay, but was not supposed to for combat injuries/conditions (per the PEB/MEB/IDES paperwork).