If you're on disability for part of the year, how do you report it on your tax return?

Question

FOR 3 MONTHS THIS SUMMER, I RECEIVED DISABILITY COMPENSATION AND NO TAXES WERE TAKEN FROM IT. HOW DO I REPORT IT? DO THEY SEND YOU A W2 OR SOMETHING?

Answer 1

Depends. If the disability premiums were paid with after-tax dollars, the income isn't taxable. However, the premiums are usually paid with before-tax money so you will get a form 1099 and need to report the income.

Don't listen to "Richard H." He's giving wrong info.

Answer 2

SSI or SSDI will send you a letter of sorts with the information for your tax return. I get one for my son's money every year, even though it's not taxable income. The first year I got one, I called the IRS & verified that it's NOT taxable income to not file. Anyways, they'll send you something. If by mid-February you don't have any paperwork, I'd call Social Security & ask what paperwork is needed, if any.

Answer 3

If you're on disability, chances are that the disability income is tax-FREE. But you should still receive a tax form for it to file with your return.