10 USC § 1403 - Disability retired pay: treatment under Internal Revenue Code of 1986

---
identifier: "/us/usc/t10/s1403"
source: "usc"
legal_status: "official_legal_evidence"
title: "10 USC § 1403 - Disability retired pay: treatment under Internal Revenue Code of 1986"
title_number: 10
title_name: "ARMED FORCES"
section_number: "1403"
section_name: "Disability retired pay: treatment under Internal Revenue Code of 1986"
chapter_number: 71
chapter_name: "COMPUTATION OF RETIRED PAY"
part_number: "II"
part_name: "PERSONNEL"
positive_law: true
currency: "119-84"
last_updated: "2026-04-17"
format_version: "1.1.0"
generator: "[email protected]"
source_credit: "(Aug. 10, 1956, ch. 1041, 70A Stat. 108; Pub. L. 96–342, title VIII, § 813(b)(3)(C), Sept. 8, 1980, 94 Stat. 1104; Pub. L. 96–513, title V, § 511(52)(A), (B), Dec. 12, 1980, 94 Stat. 2925; Pub. L. 100–26, § 7(h)(1), (2)(A), Apr. 21, 1987, 101 Stat. 282.)"
---


# § 1403. Disability retired pay: treatment under Internal Revenue Code of 1986

That part of the retired pay of a member of an armed force, computed under formula No. 1 or 2 of section 1401, or under section 1402(d) or 1402a(d) of this title on the basis of years of service, which exceeds the retired pay that he would receive if it were computed on the basis of percentage of disability is not considered as a pension, annuity, or similar allowance for personal injury, or sickness, resulting from active service in the armed forces, under section 104(a) of the Internal Revenue Code of 1986.

---

**Source Credit**: (Aug. 10, 1956, ch. 1041, 70A Stat. 108; Pub. L. 96–342, title VIII, § 813(b)(3)(C), Sept. 8, 1980, 94 Stat. 1104; Pub. L. 96–513, title V, § 511(52)(A), (B), Dec. 12, 1980, 94 Stat. 2925; Pub. L. 100–26, § 7(h)(1), (2)(A), Apr. 21, 1987, 101 Stat. 282.)

| Revised section | Source (U.S. Code) | Source (Statutes at Large) |
| --- | --- | --- |
| 1403 | 37:272(h). | Oct. 12, 1949, ch. 681, § 402(h), 63 Stat. 820. |

## Editorial Notes

### References in Text

The Internal Revenue Code of 1986, referred to in text, is set out in Title 26, Internal Revenue Code.

### Amendments

1987— substituted “Internal Revenue Code of 1986” for “Internal Revenue Code of 1954” in section catchline and text.

1980— substituted “the Internal Revenue Code of 1954” for “title 26” in section catchline and text.

inserted reference to .

## Statutory Notes and Related Subsidiaries

### Effective Date of 1980 Amendment

Amendment by  effective , see , set out as a note under .