Tax Court: Portion of Disability Retirement Based on Length of Service is Taxable

The Tax Court, in a division opinion by Judge Foley, has ruled that the portion of a police officer’s disability retirement income determined by reference to his length of service is not excludable from income under Section 104 and its regulations.

Read the opinion here:
Sewards v. Commissioner, 136 T.C. No. 15 (2012)