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par0857
New Member

I receive a disability pension from City Government do I pay federal taxes on that money

I get a disability pension check monthly from city of Phila pension board do I pay federal tax on that
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MarilynG1
Expert Alumni

I receive a disability pension from City Government do I pay federal taxes on that money

If you retired due to a disability, the pension you receive through a company-paid plan counts as wage income until you reach the minimum retirement age (the age at which you can receive a pension if not disabled).  This may be reported on a W-2. 

 

Once you reach that minimum retirement age, the pension is no longer reported as wage income but as pension income, which is reported on a 1099-R.

 

Click this link for info on Reporting Disability Income.

 

 

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