A double amputee who served in Iraq is pushing lawmakers to end the 'wounded veterans tax'

Federal policy prevents around 50,000 injured veterans from receiving both their full retirement pay and disability compensation.

WASHINGTON — When Army veteran Dan Nevins was forced to medically retire from the military after losing both his legs in combat, he thought he’d be financially taken care of by the country that he served.

But Nevins soon discovered the so-called “wounded veterans tax” — an unofficial term for a federal policy that prohibits certain injured veterans from receiving both their full retirement pay and disability compensation.

“I was told I could not receive both,” Nevins told NBC News in an interview. “And I was like, ‘Wait a minute. That’s not what I thought was going to happen.’”

Army veteran Dan Nevins traveled to the U.S. Capitol on May 21, 2025, to push for legislation that would ensure veterans are able to receive their full retirement pay and disability compensation.Frank Thorp V / NBC NewsIt’s an issue that affects around 50,000 veterans, according to the nonpartisan Congressional Budget Office, costing them each about $1,900 per month.

Under current federal policy, veterans who have less than 20 years of service and a disability rating under 50% get a dollar taken out of their retirement for every dollar they receive in disability compensation. The disability rating is assigned by the Veterans Affairs Department and assesses how much an injury or disability may impact a veteran’s health and ability to function.