Disability pensions paid to service personnel are fully excluded from gross income. The portion of a regular pension that is paid on the basis of disability may also be excluded.
Origin: IRC § 104(a)(4)
Tax Type
Tax Expenditure
Item Number
Item Name
Description
Origin
FY2018
FY2019
FY2020
FY2021
FY2022
Personal Income Tax
Exclusions from Gross Income
1.026
Exemption of Military Disability Pensions
Disability pensions paid to service personnel are fully excluded from gross income. The portion of a regular pension that is paid on the basis of disability may also be excluded.
<a href="http://www.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000104----000-.html" target="_blank">IRC § 104(a)(4)</a>
0.5
0.7
0.7
0.8
0.8
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