John McCain gets tax-free disability pension

When McCain released his tax return for 2007 on Friday, he separately disclosed that he received a pension of $58,358 that was not listed as income on his return.

On Monday, McCain's staff identified the retirement benefit as a "disability pension" and said that McCain "was retired as disabled because of his limited body movements due to injuries as a POW."

McCain campaign strategist Mark Salter said Monday night that McCain was technically disabled. "Tortured for his country -- that is how he acquired his disability," Salter said.

Certain types of military and veterans pensions are either partially or completely tax-exempt, depending on the seriousness of the disability. In McCain's case, the exemption is 100%.

If McCain had to pay taxes on the full amount of the pension, it would have increased his tax bill by about $18,000 based on the percentage of his income he paid to the federal government.

McCain spent 5 1/2 years as a prisoner of war in Hanoi. After he was released in 1973, he returned home on crutches and began a painful physical rehabilitation. He later regained flight status and commanded a Navy squadron before retiring from the service in 1981.

McCain would be the oldest man to enter the White House if he is elected president, and questions have been raised about his health.

McCain has twice developed melanoma, a potentially deadly form of skin cancer.

The fact that he is legally designated with a disability pension may raise further questions.

"It is a legitimate question to ask about the commander in chief: Is he fit to serve," said Robert Schriebman, a senior Pentagon tax advisor and tax attorney who recently retired as a judge advocate for a unit of the California National Guard.

If McCain can hike across the Grand Canyon, then why should he be getting disability payments from the government that are tax-exempt, Schriebman asked.

McCain shattered his knee and broke both arms when he was shot down over North Vietnam in 1967.

In his autobiographies, McCain said that his knee still bothered him in cold weather and that he was unable to raise his hands above his shoulders.