Are disability pensions taxable?

Answer 1

Probably - check out IRS Pub 17 here http://www.irs.gov/publications/p17/ch33.html
Note that you may be eligible for a credit even if you have to pay taxes

Answer 2

Generally, you must report as income any amount you receive for your disability through an accident or health insurance plan that is paid for by your employer. If both you and your employer pay for the plan, report as income only the amount you receive for your disability that is due to your employer's payments. Your employer should be able to give you specific details about your pension plan and tell you the amount you paid for your disability pension.

If you paid the entire cost of the plan, do not report as income any amounts you get from the plan for your disability. See Publication 525, Taxable and Nontaxable Income, for more information

If you received disability payments from Social Security, maybe.
If you're single and didn't have any other income other than disablity, then it's not taxable.
If you're married and received disability, you & your spouse's income must be under $32000. Which is your spouse's income plus 1/2 of your benefits.

Answer 3

Anything considered income is taxable. The one thing I know of that isn't taxed is money from an insurance settlement. This is not considered income as it is payment to compensate you for some sort of loss. In essence, to make you whole again.

Answer 4

They certainly are. My wife was on Social Security disability. We had to figure the taxes on it when we filed taxes. For Social Security, there is a worksheet in the schedule 1040A instruction booklet. How much is taxed depends upon the total income.

Answer 5

www.irs.gov
Go to this site and you can download any info you might need. You must have Adobe to do this.

Answer 6

If it is an income it is.

Answer 7

No Should not be

Answer 8

Mine is!!