6. Exclusions from income: governmental and military pensions
Luckily, some government and military disability payments are seen as exclusions by Uncle Sam. To exclude these types of payments from the income amounts you get as an annuity, pension, or something similar based on an injury that resulted from active service, you must meet one of the followings:
- You’ve been in the armed forces of a country;
- You’ve served for the National Oceanic and Atmospheric Administration;
- You’ve worked in the Public Health Service;
- You’ve served the Foreign Service.
