topic Are disability benefits taxable income? in Retirement tax questions https://ttlc.intuit.com/community/retirement/discussion/are-disability-benefits-taxable-income/01/576338#M54074 <P>I retired from the police department in 2016 on a duty related disability. &nbsp;I received a LINA Benefit W2 in 2017 that shows wages (box 1). &nbsp;I didn’t work or earn wages from the dept. in 2017 and my benefit was suppose to be tax free. &nbsp;Can you explain why I have taxable income on this W2?</P> Wed, 05 Jun 2019 21:56:26 GMT cvmascratch 2019-06-05T21:56:26Z Are disability benefits taxable income? https://ttlc.intuit.com/community/retirement/discussion/are-disability-benefits-taxable-income/01/576338#M54074 <P>I retired from the police department in 2016 on a duty related disability. &nbsp;I received a LINA Benefit W2 in 2017 that shows wages (box 1). &nbsp;I didn’t work or earn wages from the dept. in 2017 and my benefit was suppose to be tax free. &nbsp;Can you explain why I have taxable income on this W2?</P> Wed, 05 Jun 2019 21:56:26 GMT https://ttlc.intuit.com/community/retirement/discussion/are-disability-benefits-taxable-income/01/576338#M54074 cvmascratch 2019-06-05T21:56:26Z If your employer paid for the disability insurance, or if... https://ttlc.intuit.com/community/retirement/discussion/if-your-employer-paid-for-the-disability-insurance-or-if/01/576345#M54075 <P>If your employer paid for the disability insurance, or if&nbsp; payments you made were pre-tax,&nbsp; this income <U>is</U> taxable to you.</P><P>If you paid for the disability insurance yourself out of post tax income (in other words, you paid tax on that income and the payments weren't excluded from your W-2 income when you were working), this would <U>not </U>be taxable to you.</P><P>The IRS says "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 7 of Form 1040 or Form 1040A until you reach minimum retirement age. Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled."</P><P>See&nbsp; &nbsp;<A href="https://www.irs.gov/publications/p907" rel="nofollow" target="_blank">this link</A>&nbsp;under Disability Pensions.</P><P></P> Wed, 05 Jun 2019 21:56:28 GMT https://ttlc.intuit.com/community/retirement/discussion/if-your-employer-paid-for-the-disability-insurance-or-if/01/576345#M54075 IsabellaG 2019-06-05T21:56:28Z
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topic Are disability benefits taxable income? in Retirement tax questions
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<P>I retired from the police department in 2016 on a duty related disability. &nbsp;I received a LINA Benefit W2 in 2017 that shows wages (box 1). &nbsp;I didn’t work or earn wages from the dept. in 2017 and my benefit was suppose to be tax free. &nbsp;Can you explain why I have taxable income on this W2?</P>
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<P>I retired from the police department in 2016 on a duty related disability. &nbsp;I received a LINA Benefit W2 in 2017 that shows wages (box 1). &nbsp;I didn’t work or earn wages from the dept. in 2017 and my benefit was suppose to be tax free. &nbsp;Can you explain why I have taxable income on this W2?</P>
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If your employer paid for the disability insurance, or if...
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<P>If your employer paid for the disability insurance, or if&nbsp; payments you made were pre-tax,&nbsp; this income <U>is</U> taxable to you.</P><P>If you paid for the disability insurance yourself out of post tax income (in other words, you paid tax on that income and the payments weren't excluded from your W-2 income when you were working), this would <U>not </U>be taxable to you.</P><P>The IRS says "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 7 of Form 1040 or Form 1040A until you reach minimum retirement age. Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled."</P><P>See&nbsp; &nbsp;<A href="https://www.irs.gov/publications/p907" rel="nofollow" target="_blank">this link</A>&nbsp;under Disability Pensions.</P><P></P>
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