If you served in the U.S. military, your taxes will likely be more complicated than for the average civilian. Veterans are entitled to a multitude of tax benefits—and it’s easy to let some key tax breaks slip through the cracks.
In today’s post, we examine three commonly missed benefits that can have a major impact on your bottom line:
- Disability benefits don’t count toward your income. You don’t have to include disability benefits you receive from the VA in your gross income. This includes disability compensation and pension payments, grants for housing or vehicles and dependent-care assistance benefits.
- You could get a severe disability tax exemption. In Georgia, if you’re a veteran with a qualifying severe disability—or a surviving spouse of minor child of a qualifying veteran—you could receive a tax exemption of more than $60,000. If you filed your tax return without claiming this exemption in the past, you may have overpaid on your taxes. In this case, you can file a claim for a refund for up to three years after the payment date.
- You could get a refund on disability severance payments. If you received disability severance payments after January 17, 1991, you may be able to claim a refund for overpayment. The average refund amount ranges from $1,750 to $3,200, depending on the tax year for which you’re claiming overpayment.
Filing a tax return as a veteran—especially when it involves going back several tax years to claim refunds—can be an overwhelming process. Nonetheless, the money you could stand to get back could be significant enough to make it worth your while. For help preparing your return—and to make sure you’re receiving every possible benefit—it’s worth consulting with an experienced tax attorney.