Thousands of veterans may qualify for a refund on disability. The Pentagon is reaching out to veterans who could be eligible for the refund.
A federal law says, veterans who suffered from combat-related injuries and are separated from the military are exempt from taxes on one-time lump sum disability payments.
In 2016, Congress passed the Combat-Injured Veterans Tax Fairness Act, requiring the Pentagon to identify the veterans. Once a veteran is notified, they have one year to file for a refund.