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Jennifer, I do know that the percentage that VA would give as part of a military retirement is exempt from income taxes. Otherwise, any other portion of this monthly check is taxed. I am not sure if this applies to governmental civilian workers or not, that retirement due to disability is allowed partial or all of this a tax break. I do know that social security checks for dependent children are added to a parent and taxed up to the amount that they are taxable. Temporary disability money is not taxed. I agree it seems wrong to punish someone even more for being unable to work and if so, it should at least be based on ones ability to pay not on the amount that is given each month. * seattle* Audrey