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.
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
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.""""