RAO Davao City

United States Military Retiree Activities Office Davao City, Philippines

VA RETRO PAY PROJECT UPDATE 2 September 14, 2008

Posted by Service Officer on September 14th, 2008

The Heroes Earnings Assistance and Relief Tax Act of 2008, signed into law on 17 JUN 08, changed the federal income tax filing deadlines and the length of the look-back period for amended tax returns when retirees are affected by a retroactive VA disability compensation determination. Amended tax returns usually are required when you have paid income taxes on past retirement income that later becomes tax-free income as a result of the award of retro-VA compensation. For retro-VA compensation determinations as of 18 JUN 08 or later, retirees have up to one year to file their amended return from the date of the VA determination. The retiree now can amend tax returns going back five years. It used to be a three-year look-back. There also is a transition period allowed in the tax code change. For retro-VA compensation determinations from 1 JAN 01 through 17 JUN 08, retirees have until 17 JUN 09 to file amended returns for tax refunds for tax years 2001 to the present. Consult your tax specialist for more detailed information about how these changes affect you. Refer to H.R. 6081, Section 106, which amends the IRS Tax Code Section 6511(d) by adding a new paragraph (8). For a technical explanation of H.R. 6081 on the House of Representative’s Web site refer to www.house.gov/jct/x-44-08.pdf. additional reference can be located at www.govtrack.us/congress/billtext.xpd?bill=h110-6081 and

frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h6081enr.txt.pdf . [Source: MOAA News Exchange 10 Sep 08 ++]

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