You are a nut job. The source you quoted doesn’t even mention the phrase “Federal Source”
it does mention Federal Payments, which are described as any payment from both private, public, and government employers:
C)Specified Federal paymentsFor purposes of this paragraph, the term “ specified federal payment” means—
(i)any payment of a social security benefit (as defined in section 86(d)
(ii)any payment referred to in the second sentence of section 451(d)1 which is treated as insurance proceeds,
(iii)any amount which is includible in gross income under section 77(a), and
(iv)any other payment made pursuant to Federal law which is specified by the Secretary for purposes of this paragraph.
