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Returning Member
posted Mar 1, 2021 8:13:09 AM

taxable retirement income

Is disability retirement income taxable for a 65 year old federal civil service retiree?

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3 Replies
Expert Alumni
Mar 1, 2021 8:41:42 AM

Disability Pensions

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. Minimum retirement age is generally the age at which you can first receive a pension or annuity if you aren’t disabled.

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PUB 907

Returning Member
Mar 1, 2021 8:51:02 AM

Minimum retirement age is 56 - individual is now 65 and receives a form CSA 1099R. Distribution code is 3-Disability. Box 5 shows  1509.67. Box 9B shows 33294 Employee Contribution.

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Expert Alumni
Mar 1, 2021 8:58:02 AM

Yes. It is taxable. I referenced IRS Publication 907 in my answer.