Thomas Campbell v. United States

MEMORANDUM

The plaintiffs in these consolidated appeals are retired Los Angeles County firefighters who have service-connected disabilities. The plaintiffs each filed a separate action in district court seeking a tax refund, and the district court granted summary judgment to the Government in each of the cases. We exercise jurisdiction under 28 U.S.C. § 1291 , we review the district courts’ conclusions of law de novo, see Nakano v. United States, 742 F.3d 1208, 1210 (9th Cir.2014), and we affirm.

1. A Los Angeles County employee who retires with a service-connected disability is entitled to receive a pension equal to half the employee’s final salary. Cal. Gov’t Code § 31727.4. If the employee qualifies for a service pension in an amount greater than half the employee’s final salary, however, the employee receives the service pension amount. Id. Each of the plaintiffs received a pension equal to the amount of his service pension, which was calculated based on years of service.

2. Section 104(a)(1) of the Internal Revenue Code specifically excludes from taxation “amounts received under workmen’s compensation acts as compensation for personal injuries or sickness.” 26 U.S.C. § 104…