Artículo service-connected disability. service-connected disability

id="en_US_2025_publink1000171334"> Service-connected disability. You may be able to exclude from income amounts you receive as a pension, an 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. Conditions for exclusion. Don’t include the disability payments in your income if any of the following conditions apply. 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’re 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. Pension based on years of service. If you receive a disability pension based on years of service, in most cases you must include it in your income. However, if the pension qualifies for the exclusion for a service-connected disability (discussed earlier), don’t include in income the part of your pension that you would have received if the pension had been based on a percentage of disability. You must include the rest of your pension in your income. Retroactive VA determination. If you retire from the armed services based on years of service and are later given a retroactive service-connected disability rating by the VA, your retirement pay for the retroactive period is excluded from income up to the amount of VA disability benefits you would have been entitled to receive. You can claim a refund of any tax paid on the excludable amount (subject to the statute of limitations) by filing an amended return on Form 1040-X for each previous year during the retroactive period. You must include with each Form 1040-X a copy of the official VA determination letter granting the retroactive benefit. The letter must show the amount withheld and the effective date of the benefit. If you receive a lump-sum disability severance payment and are later awarded VA disability benefits, exclude 100% of the severance benefit from your income. However, you must include in your income any lump-sum readjustment or other nondisability severance payment you received on release from active duty, even if you’re later given a retroactive disability rating by the VA. Special statute of limitations. In most cases, under the statute of limitations, a claim for credit or refund must be filed within 3 years from the time a return was filed or 2 years from the time the tax was paid. However, if you receive a retroactive service-connected disability rating determination, the statute of limitations is extended by a 1-year period beginning on the date of the determination. This 1-year extended period applies to claims for credit or refund filed after June 17, 2008, and doesn’t apply to any tax year that began more than 5 years before the date of the determination. 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 or military action 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. Long-Term Care Insurance Contracts Long-term care insurance contracts in most cases are treated as accident and health insurance contracts. Amounts you receive from them (other than policyholder dividends or premium refunds) in most cases are excludable from income as amounts received for personal injury or sickness. To claim an exclusion for payments made on a per diem or other periodic basis under a long-term care insurance contract, you must file Form 8853 with your return. A long-term care insurance contract is an insurance contract that only provides coverage for qualified long-term care services. The contract must: Be guaranteed renewable; Not provide for a cash surrender value or other money that can be paid, assigned, pledged, or borrowed; Provide that refunds, other than refunds on the death of