The type of disability payments you receive will determine how or if it is reported on your tax return.
If you receive Social Security Disability Benefits, this is generally not taxable unless you receive other types of income. If your other income exceeds $25,000 for an individual or $32,000 for married filers, a portion of your Social Security Disability Benefits may be taxable. TurboTax will help you determine the taxable portion. Please see the steps below:
- Log into TurboTax and click on any topic to continue
- Click on Federal from the menu on the left-hand side
- Click on Wages & Income at the top of the screen
- Scroll down to Retirement Plans and Social Security and click on Show More
- Click on Start or Revisit next to Social Security (SSA-1099, RRB-1099) and answer the questions
Disability benefits received as a result of injuries under a no-fault auto insurance policy and benefits received from the Department of Veterans Affairs are not taxable and do not need to be reported on your tax return.
For more information on disability benefits, please see this TurboTax Article.
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