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February 6, 2023
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Taxable disability income

  • February 6, 2023
  • 1 reply
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My wife, 59-year-old, was taxed on her Public Employee Retirement System contributions (50/50 employer/employee). Last year she became disable. Why is she now taxed on her disability income? (1099-R)

Best answer by MayaD

Only the amount you receive for your disability that's due to your employer's payments is reported as income.

 

Per IRS: If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. You must report your taxable disability payments as wages on line 1 of Form 1040 or 1040-SR until you reach minimum retirement age. 

IRS.gov

1 reply

MayaDAnswer
Alumni - Intuit
February 6, 2023

Only the amount you receive for your disability that's due to your employer's payments is reported as income.

 

Per IRS: If you retired on disability, you must include in income any disability pension you receive under a plan that is paid for by your employer. You must report your taxable disability payments as wages on line 1 of Form 1040 or 1040-SR until you reach minimum retirement age. 

IRS.gov

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