Is/are disability payments taxable?
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It depends on the type/source of the payments. For example, SSDI is not taxable/reportable.
Thanks for the response,
My wife is the one on disability however in 2020 I was working full time. I got a note from the IRS saying I didn't put down the payment anywhere and asked to file form 1040X. I read through the pages of instructions and am totally lost... I'm not even sure where it put the figures in the 1040X (I gather it would be on line 6a on the original tax document submitted....
SSDI may indeed be taxable, depending upon your other (Joint) income. However, SSI (supplemental Security Income) is not taxable. Most employer-provided disability plans are taxable, while private plans for which you paid the premiums yourself are not.
State tax treatment may vary from that of Federal.
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