Is this your first year? TT should recognize Disability from the type of forms your income is reported on. I was forced into retirement and only pay taxes based on box 2, which is substantially less than Box 1 total income. TT will ask me to double check, but bottom line is, I pay no taxes, but would be in a paying bracket if based on box 1.
The type of disability payments you receive will determine how or if it is reported on your tax return.
If you receive Social Security Disability Benefits, this is generally not taxable unless you receive other types of income. If your other income exceeds $25,000 for an individual or $32,000 for married filers, a portion of your Social Security Disability Benefits may be taxable. TurboTax will help you determine the taxable portion. Please see the steps below:
Disability benefits received as a result of injuries under a no-fault auto insurance policy and benefits received from the Department of Veterans Affairs are not taxable and do not need to be reported on your tax return.
For more information on disability benefits, please see this TurboTax Article.