Veterans owed money from government

More than 130,000 U.S. veterans who were released from service due to injuries sustained in combat are due federal income tax refunds because of a Department of Defense error that continued for decades, according to a news release from the Fulton County Veterans Service Agency.

For 25 years, between 1991 and 2016, a computer glitch at the agency caused non-taxable disability severance payments to be subject to income taxes, a Defense Department official told CBS MoneyWatch. The government is now trying to help veterans or their survivors recover these old overpayments, each of which is expected to result in refunds of $1,750 or more.

The National Veterans Legal Services Program, a nonprofit advocacy group that originally discovered the tax mistake, estimates that some veterans are due refunds exceeding $10,000.

“I would encourage veterans and surviving family members to contact a Veterans Service Officer to help navigate the process,” said Doug Nordman, a retired military officer who now writes The Military Guide blog. “Every case is going to be different.”

For more information, call the Fulton County Veterans Service Agency, 223 W. Main St., basement room 10, Johnstown, at (518) 736-5960 or email veterans@fultoncountyny.gov.

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