The U.S. government owes "substantial federal income tax refunds" to hundreds of thousands of veterans who were injured in combat and subsequently released from service, according to a CBS MoneyWatch report.
According to the report, a computer glitch at the Department of Defense made non-taxable disability severance payments subject to income taxes from 1991 to 2016. The government told CBS that they are now trying to help the more than 130,000 veterans or survivors recover the money they overpaid, which they expect will result in refunds of at least $1,750.
The Department of Defense says that veterans who were discharged between January 1991 and December 2016 are likely affected by the error. If these veterans have not filed a refund, the Department of Defense will send them a letter explaining how much money the veterans are owed. DOD started sending letters on July 9 and will continue sending them through July 20.
Veterans then have one year to file an amended tax return to claim their refund.