Taxable disability income

jobyboy · ‎February 5, 2023

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)

MayaD · ‎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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View solution in original post

MayaD · ‎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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**Mark the post that answers your question by clicking on "Mark as Best Answer"