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Bill would reimburse combat-injured vets for taxed severance pay

from Military.com

Lawmakers filed legislation intended to prevent states from taxing severance pay of combat-injured veterans, which one senator claims has resulted in some $78 million improperly taken from veterans. The money being taxed is the one-time lump sum disability severance pay veterans receive from the Defense Department, a payment that is not supposed to be taxed and would not be but for a glitch with the DoD's automated payment system, according to lawmakers. more


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