US SB878

Extends the Combat-Injured Veterans Tax Fairness Act of 2016 to cover Coast Guard members when the Coast Guard is operating under the Department of Homeland Security rather than the Department of the Navy

Requires the Secretary of Homeland Security and Secretary of Transportation to identify and report improperly withheld tax amounts from severance payments to combat-injured Coast Guard veterans within one year of enactment

Adds the Secretary of Homeland Security alongside the Secretary of Defense as responsible parties for ensuring taxes are not improperly withheld from disability severance payments going forward

Covers Coast Guard service periods under both the Department of Homeland Security (current) and the Department of Transportation (historical) for purposes of identifying affected veterans

Addresses a gap in existing law that excluded Coast Guard personnel from tax refund protections already available to combat-injured veterans of other military branches