Straight from the horses mouth as they say!
---------------------------- Original Message ----------------------------
Subject: IRS Email Tax Law Assistance
From: TaxHelp.ETLA@irs.gov
NOTE: Thank you for your inquiry. Our response to your tax law question
appears below. I hope this information has been helpful. If you have a
follow-up question or another general tax law question, please return to
our web site at: www.irs.gov.
The Answer To Your Question Is:
Thank you for your inquiry dated January 1, 2015, regarding the taxability
of your War Disability and Social Security pensions issued by the United
Kingdom. We apologize for the delay in providing you a timely response.
If your War Disability and Social Security Mobility pension payments are
for a service related injury you suffered while on active duty in the
military as part of your assigned post or station of operation, the
benefits associated with the type of injury you received are not taxable
and should not be treated as income, or reported on a United States income
tax return if you have a filing requirement.