IRS publication 525 advised e a military disability rating of 20% or higher is eligible to recoup money deducted from their retirement pay for previous years. How?

[david-james8]

IRS publication 525 updated in 2016 to advise a military disability rating of 20% or higher is eligible to recoup money deducted from their retirement pay for previous years.  How would I go about doing tha?  Which forms need to be filed to recover monies due for previous years. 

[Zanayah]

How

[JulieR]

If you are eligible, you will need to file an amended tax return (Form 1040X), for the tax years to which this pertains, in order to claim a refund.  Generally, you have 3 years to file an amended return in order to receive a refund. To amend your returns, use the following instructions: https://ttlc.intuit.com/replies/3288565

The following IRS link provides additional information about this Special Tax consideration for veterans.

https://www.irs.gov/individuals/military/special-tax-considerations-for-veterans

[mariodee3]

I forgot to include this from 2020 IRS publication 525, pages 18-19.  For an example see page  19 "Example 19" which states ""Example 19. You retired in 2014 and receive a pension based on your years of service. On August 3, 2020, you receive a determination of service-connected disability retroactive to 2014. Generally, you could claim a refund for the taxes paid on your pension for 2017, 2018, and 2019. However, under the special limitation period, you can also file a claim for 2016 as long as you file the claim by August 3, 2021. You can't file a claim for 2014 and 2015 because those tax years began more than 5 years before the determination.""""