Remember 1991? George H.W. Bush was president and the Governor of Arkansas, some guy named Bill Clinton had announced he would run against him. That year a glitch went into effect that kept thousands of dollars from injured veterans. The department of defense is now fixing the error and disabled veterans will see some refunds.
Here's the crux of the situation. This refund affects any veteran discharged due to injury between 1991 and 2016. That's more than 130,000 people. The glitch taxed non-taxable disability payments.
Everyone's situation is different but some veterans are due refunds over $10,000. The department of defense is in the process of mailing letters.
There are a lot of rules in place and it can difficult to understand. If you think this applies to you or a family member, contact a veterans service officer. They'll be able to guide you through the process.