It depends- Your benefit will be subject to federal income taxes and, if you live in Virginia, state income taxes, unless you retire on work-related disability with the guaranteed benefit. In most cases, you would receive a 1099-R if it was taxable.
If you retire on work-related disability with the guaranteed benefit, your benefit will not be subject to federal or state income taxes. The work-related disability benefit based on the VRS formula amount is subject to income taxes for any benefit amount over the guaranteed benefit.
If you are not 100% sure, you should contact the VRS.
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