William D. & Joyce M. Reimels v. Commissioner of Internal Revenue

FEINBERG, Circuit Judge.

Petitioners William and Joyce Reimels appeal from a decision of the United States Tax Court holding that Social Security disability benefits could not be excluded from gross income on their joint income tax return for the 1999 tax year. The payments were made to Mr. Reimels for his inability to work due to lung cancer he developed from wartime exposure to Agent Orange. Petitioners 1 argue that the disability payments are excludable as amounts received “for personal injuries or sickness resulting from active service in the armed forces.” 26 U.S.C. § 104(a)(4). We hold…