Good afternoon, ladies and gentlemen,

As many of you know, the DoD has identified more than 130,000 Veterans whose Disability Severance Pay (DSP) was taxed that may be eligible for a tax refund attributable to their DSP.

On July 9, the DoD began individually notifying the identified Veterans by letter through the US Postal Service. That effort is expected to continue through July 20.

The identified Veterans will have one year from the date of the DoD notification letter to file for their refund, or three years since filing their tax return that reported their DSP, whichever is later.

I have attached for your use a fact sheet that provided more details, and I would appreciate your sharing this information with those veterans among your membership or who may be affected.

Also, I have attached a DoD news article on this topic that provides additional information. That article may be found online Click Here

Many thanks in advance. As always, please let me know if you have any questions and I will ensure our SMEs provide responses.

Best wishes to all,

David L. Nokes
Office of the Assistant Secretary of Defense (Public Affairs)
Community & Public Outreach
Pentagon

Links:

  1. DoD News Article - Eligible Veterans Can Seek Refund for Taxes on Disability Severance Payment
  2. DoD Information Paper--Tax Refunds Available for Certain Veterans that Received Disability Severance Payments since 1991DoD Information Paper--Tax Refunds Available for Certain Veterans that Received Disability Severance Payments since 1991