I have federal medical disability income and am only 44 years old. Do I have to pay state taxes on this income? I also have a state job which I pay state and federal tax.

[xmasbaby0]

By federal disability income----do you mean you are getting Social Security disability?   Or something else?   You have not mentioned what state you are in so we cannot say if your disability income is taxable in your state.

[tutansmith]

I live in Indiana. I worked for the federal government and got sick. It is not SSI. It comes from the Office of Personnel Management specifically for the Federal Aviation Administration employees. I have to report any income earned outside of the disability to their office. I can work any job that is not a federal position. 

[BrittanyS]

The income would be reported on your Indiana State Income Tax return.  However, Indiana does have a disability income tax deduction you can claim if you meet the qualifications.  Per the Indiana Department of Revenue, "to qualify for the deduction, an individual must be (1) retired on disability before the end of the taxable year and (2) permanently and totally disabled at the time of retirement."  See the link below for more information:

• Indiana Disability Deduction