U.S. Representatives Don Davis (D-Snow Hill) and Don Bacon (R-Nebraska) have introduced a new bill, H.R. 2973, aimed at ensuring that U.S. Coast Guard veterans receive the full benefits they’ve earned through their service. The bill, titled the Coast Guard Combat-Injured Tax Fairness Act, seeks to close a loophole that has long excluded combat-injured Coast Guard veterans from receiving tax refunds afforded to their counterparts in other branches of the military.
The new legislation builds on the Combat-Injured Veterans Tax Fairness Act of 2016, which retroactively refunded taxes that were improperly withheld from combat-injured veterans in the Army, Navy, Air Force, and Marine Corps. However, the previous law did not extend these same benefits to veterans from the Coast Guard, a significant oversight that the new bill seeks to rectify.
Closing the Loophole for Coast Guard Veterans
The Coast Guard Combat-Injured Tax Fairness Act ensures that combat-injured veterans from the Coast Guard will receive the same tax break as veterans from other services, making the benefits fair and consistent across the board. According to Rep. Bacon, “The Coast Guard personnel injured while serving in combat were not included in that legislation.” He further explained, “This new bill will ensure that Coast Guard veterans receive their full benefits as combat-injured veterans, just like their sister services.”
The legislation would also help prevent similar oversights in the future, ensuring that veterans receive the full tax relief they are entitled to, especially for disability severance payments. These payments, often a crucial source of financial support for injured veterans, were subject to improper tax withholding, affecting many service members.
The Impact of the Legislation
In 2018, the U.S. Department of Defense and the Internal Revenue Service (IRS) estimated that approximately 130,000 non-Coast Guard veterans were eligible for tax refunds totaling around $280 million for disability severance payments. As of 2023, over 4,860 U.S. Coast Guard veterans with service-connected disabilities could have been eligible for an estimated $11 million in refunds.
However, many veterans did not receive their refunds because the 2016 law did not include Coast Guard veterans in its scope. This resulted in a significant gap in benefits, leaving these veterans without the financial relief they deserved.
A Step Forward for Fairness and Equity
Rep. Davis emphasized the importance of the legislation, stating, “It is essential that we prioritize the well-being of our U.S. Coast Guard combat-injured veterans, closing this loophole and ensuring they receive full benefits.” He added, “We must not stop advocating passionately for our U.S. Coast Guard veterans who have devoted their lives to serving our country. Together, we must work to ensure no veteran is left behind.”
If passed, H.R. 2973 would finally provide the same benefits to Coast Guard veterans, ensuring fairness for those who have served in one of the most important branches of the U.S. military. This bipartisan effort demonstrates a strong commitment to ensuring that no veteran is left behind, no matter their branch of service.
What Veterans Can Do
Veterans who believe they are eligible for refunds under the Coast Guard Combat-Injured Tax Fairness Act should remain informed about the bill’s progress. If you’re a Coast Guard veteran who may have been affected by this oversight, it’s important to keep track of the legislation and seek guidance on how to access the tax refunds you may be entitled to.
Additionally, veterans who need help navigating the complexities of military service-related claims, including disability compensation or tax benefits, can reach out to Veterans Guide for assistance. We are committed to helping veterans understand their rights and ensuring they receive the full benefits they deserve. Veterans Guide is here to guide you through the process, whether it’s for tax refunds, disability claims, or any other veterans’ benefits.
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