December 13, 2007

Congresswoman Kirsten Gillibrand announced that the Internal Revenue Service has issued a new rule that wages paid under the Department of Veterans Affairs' Compensated Work Therapy (CWT) program will now be considered a tax-free veteran benefit. 

The IRS also stated that veterans who have previously paid federal taxes on CWT wages are eligible for a refund. 

"I believe helping America's disabled veterans is a moral obligation for our country, and I fully support the new IRS rules.  The Compensated Work Therapy program empowers disabled veterans to acquire new jobs skills and readjust to civilian life, and these benefits should not be taxed by the federal government," said Congresswoman Gillibrand a member of the Armed Services Committee. "Part of supporting our troops is making sure that these brave individuals know that America will take care of them when they return from war, and in Congress, I will continue to fight for more tax relief for Upstate New York's veterans."

This year, over 19,000 veterans received Compensated Work Therapy program payments.  For veterans who are having difficulty finding work because of their disabilities, the Department of Veterans Affairs' Compensated Work Therapy program contracts with businesses in the community to assist them in learning new job skills and finding work in the community.  There is a CWT program in Albany, at 170 Ontario Street. 

Anyone with questions about claiming a refund can contact the IRS at 1-800-829-1040.

Gillibrand serves on the House Armed Services Committee, and has a Veterans Advisory Board, who she meets with on a regular basis to discuss military and veteran's issues.