Have a Tax Question? Ask a Tax Expert
Certain military and government disability pensions are not taxable.
The armed forces of any country.
The National Oceanic and Atmospheric Administration.
The Public Health Service.
The Foreign Service.
You were entitled to receive a disability payment before September 25, 1975.
You were a member of a listed government service or its reserve component, or were under a binding written commitment to become a member, on September 24, 1975.
You receive the disability payments for a combat-related injury. This is a personal injury or sickness that:
Results directly from armed conflict,
Takes place while you are engaged in extra-hazardous service,
Takes place under conditions simulating war, including training exercises such as maneuvers, or
Is caused by an instrumentality of war.
You would be entitled to receive disability compensation from the Department of Veterans Affairs (VA) if you filed an application for it. Your exclusion under this condition is equal to the amount you would be entitled to receive from the VA.