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Military and Government Disability Pensions
Certain military and government disability pensions aren’t taxable.
Terrorist attack or military
action
Don’t include in your income
disability payments you
receive for injuries incurred as
a direct result of a terrorist
attack directed against the
United States (or its allies),
whether outside or within the
United States or from military
action.
See Pub. 3920 and Pub. 907
for more information.