Tax refunds for Coast Guard veterans with combat injuries on severance payments.
This Act extends existing tax fairness provisions for combat-injured veterans to include members of the Coast Guard. This means that Coast Guard veterans who received severance payments for combat-related injuries, and from which taxes were improperly withheld, will be entitled to a refund of those amounts. The law mandates the Secretaries of Homeland Security and Transportation to identify and restore these improperly withheld funds within one year of the Act's enactment.
Key points
Coast Guard veterans injured in combat are now eligible to receive refunds for taxes improperly withheld from their severance payments.
The Act amends the Combat-Injured Veterans Tax Fairness Act of 2016 to cover the Coast Guard, regardless of whether it operated under the Department of the Navy, Homeland Security, or Transportation.
The Secretaries of Homeland Security and Transportation must identify and ensure the restoration of improperly withheld amounts within one year.
The change ensures that future severance payments for injured Coast Guard members will not be subject to improper tax withholding.
Expired
Additional Information
Print number: 118_S_725
Sponsor: Sen. Cassidy, Bill [R-LA]
Process start date: 2023-03-08