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JOHNNYCPA
Level 4
May 3, 2026
Question

911 victim fund- SSA disability excluded from income tax return

  • May 3, 2026
  • 3 replies
  • 8 views

I have a client that is receiving social security disability that is directly related to 911.   According to IRS publication 3920, you exclude the SSA  payments as income from  the 2025 tax return.   For 2025 return,  is it safe to place the gross amount of ssa on line 6a and the zero amount on the taxable amount? 

It seems that if you exclude the SSA income completely due to injury form 911, you will always get a IRS notice for understatement of income (SSA).

The IRS has a a special address to send the paper return to them.

Is there a preparer that had a client with a 911 disability.

john

3 replies

Just-Lisa-Now-
Intuit Community Champion
May 3, 2026

I havent had one of these, but I think youd be better off putting the adjustment on Line 8 of Sch 1, with a description of the adjustment.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
BobKamman
Level 15
May 3, 2026

Why not ask in the same thread you started in March?  If the law says it's excluded, don't enter it anywhere, and include a cover letter pointing that out when you send it to the special address.  

There is a tax on income, not pieces of paper.  

 

https://accountants.intuit.com/community/proseries-tax-discussions/discussion/social-security-disability-not-taxable-due-to-injuries-911/00/351937 

BobKamman
Level 15
May 3, 2026

I don't read Pub 3920 to mean returns from taxpayers with excluded SSDI should mail returns to a special address.  The two addresses given are for "tax forgiveness" of decedents; and for estates filing Form 706.  However, the publication does have a special phone number to call.  Have you tried that?

Questions about Publication 3920. If you have questions about the topics covered in this publication, call the IRS at 1­866­562­5227 Monday through Friday during the following times.
In English–7 a.m. to 7 p.m. local time.
In Spanish–7 a.m. to 7 p.m. local time.

However, Pub 3920 has not been revised since 2014, so most people who work at IRS have never heard of it, and might not have been alive in 2001.  

There is an example in the publication that suggests SSDI received before normal retirement age should not be reported on Form 1040.  (I agree.)  "Dan's full retirement age for social security retirement benefits is age 66. Dan's birthday is April 25. In the year Dan turned 66, Dan received $1,500 per month in benefits from the Social Security Administration. Because Dan became eligible for a full retirement benefit in May, the month after he turned 66, he can exclude only four months of his annual benefit from his income ($6,000). Dan must report the remaining $12,000 on Form 1040, line 20a"

I don't play the "trick the IRS computer" game by adding in excluded income and then subtracting a fantasy adjustment.  What has this taxpayer been doing for the last 25 years, and has it worked?  Or was SSDI just recently awarded?  Is there documentation that it is 9/11 related?

JOHNNYCPA
JOHNNYCPAAuthor
Level 4
May 5, 2026

thank Bob for your help.

My client is 58 and is on SSA diasability.  Recently, he was also awarded 911 compensaton from 911 victim fund.   I am taking your advice and have cover letter and exclude SSA disability income.  John