Have client age 59 who filed for Disability Benefits and received lump sum check for back months and will receive monthly checks from now on. All taxable?
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Sounds like disability pension to me. If it is the case, he should receive a year end tax statement every year and the benefits is all taxable.Originally posted by BillV View Post -
It is like receiving social security. He will receive a statement from social security with the amount of benefits he received.
Whether it is taxable would depend on his filing status and if there was other taxable income on the return.
If he is single and has no other income, it would not be taxable.
If he is married and his spouse works and half of the social security benefits and the other income is more than $32000, then some of it will be taxable.
If some of it is from a previous year, there is a way to figure the amount he received for each year and if any of it is taxable.
Linda, EAComment
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You are right if the benefits is paid by the SSA. For whatever reason, I assumed the disability benefits that he mentioned is paid by former employer.Originally posted by oceanlovin'ea View PostComment
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His title said SS Disability Benefits. And as Ocean said, if benefits are for back year(s), you can calculate using Lump Sum Election worksheet for SS. SSA-1099 will identify which years benefits are being paid. And if he is single, with no other income, it might be taxable if over $25,000.Comment
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