Retirement tax questions

Disability benefits from a workplace may be taxable if the premiums are paid by your employer on a tax-free or pre-tax basis.  You would get a W-2 from the employer or the benefits company and report that as normal.  Social security disability benefits may be taxable if you have other taxable income (like other wages, gambling winnings, pension or IRA withdrawals, etc.)

 

Being on disability is not an excuse to not pay taxes on other income that would normally be taxable, like investments, gambling, pension, or IRA withdrawals.  You can always prepare a tax return -- Turbotax online is "free to start" and you only pay if you need to file a return.  If your income is not taxable, Turbotax will tell you that you don't need to file.

 

If you are asking the backdoor question of "do I still get child or other tax credits if I am disabled" that depends on all your tax facts and income and we can't answer without a lot more information.   Workplace disability payments on a W-2 are usually considered "income earned from working" for the first 12 months, assuming you are less than your full retirement age, and are considered income not earned from working after 12 months on disability.