M
MyAngst
Guest
My husband was given a medical discharge due to an injury recieved during training. He was given a lump sum payment which was then taxed at 28%. During his out processing he was inform that the disablity pay is not taxable due to a court case a few years ago, however the military still deducts the tax. We have spoken with the IRS several times and are told we can only deduct what we would have been paid by the VA. However that in no way makes up for what was removed from his disability pay for taxes. One person from the IRS stated we could deduct the amount from our income, use an asterick to indicate a message and attach a letter explaining why we have done this. However, we don't want to bring the IRS down on our heads. Why is there not a form for this process? Is there another way to handle this difficulty? We would appreciate all the money the returned.
Thank you for any help you can give.
Thank you for any help you can give.