is war injury comensation counted as gross income?

Question

when filling out finace report should it be incuded

Answer 1

I assume your were an active participant in the Military? If so, certain military and government disability pensions are not taxable. You may be able to exclude from income amounts you receive as a pension, annuity, or similar allowance for personal injury or sickness resulting from active service in one of the following government services:

The armed forces of any country.
The National Oceanic and Atmospheric Administration.
The Public Health Service.
The Foreign Service.

Do not include the disability payments in your income if any of the following conditions apply.

1. You were entitled to receive a disability payment before September 25, 1975.
2. 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.
3. You receive the disability payments for a combat-related injury. This is a personal injury or sickness that:
a. Results directly from armed conflict,
b. Takes place while you are engaged in extra-hazardous service,
c. Takes place under conditions simulating war, including training exercises such as maneuvers, or
d. Is caused by an instrumentality of war.
4. 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.

This is based on the information provided to me. If this does not help you, please refer to IRS Publication 3 "Armed Forces' Tax Guide" at this link: http://www.irs.gov/publications/p3/index.html