@Bjoin52
Such disability payments are considered earned income if they are paid out to you before the year of normal retirement for the plan. Once you reach the normal retirement age for that plan, then the disability payments are considered normal retirement benefits and are not earned income.
You said, "They pulled an audit on me and they want me to pay $1,090.00 plus $135.08 in Tax Deficiency and Penalties for 2017 when I was disability."
What exactly was the penalty for?
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