Taxable disability income
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)
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)
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.
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