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Jenmeneley
Jan 6, 2009, 01:46 PM
I have been claiming disability for 5 months, do I claim this on my tax form?

de_de_gc
Jan 6, 2009, 02:25 PM
Jenmeneley,

For federal purposes, that depends on what the disability benefits are received for. If disability is received under a worker's compensation act for personal injuries or sickness, received under a policy of accident and health insurance, the amounts are exempt. (Paraphrased from U.S. Master Tax Guide published by CCH).

If you are receiving reimbursement for expenses that you had in previous years used as a deduction, those amounts would be taxable.

Amounts received as damages for emotional distress, or back pay, are taxable. Interest and punitive damage awards are not exempt from taxation. Also, some amounts received for attorney's fees may not be exempt (even if paid directly to the attorney).

State laws do not always "conform" to (agree with) state laws, so your benefits exempt from federal taxation could in theory still be taxable at the state level. You will need to check with your state taximg authority or let us know which state you live in so that someone familiar with that state can chime in.

Let me know if you would like more information.

Jenmeneley
Jan 6, 2009, 03:30 PM
I am on disability due to pregnancy. I have already received my w2 form from work, do I have to wait for anything from disabililty before I can file my taxes?

de_de_gc
Jan 6, 2009, 03:41 PM
You should receive a form from disability (Please forgive me that I do not know the form number off the top of my head, I am sure I should).

I do believe that since it is a benefit that is not related to an illness arising from employment, it will be taxable by at minimum the fed.

AtlantaTaxExpert
Jan 7, 2009, 10:29 AM
Agreed. The disability is actually sick pay, which is fully taxable as compensation.