How do I add a reference note to the return indicating the benefits are for a 911 disability and not subject to taxes?

Forum|Forum|1 year ago
September 7, 2024
2 replies
14 views

I am preparing a return for a client who received SSDI from a 911-related illness. The amount is not taxable. I am using Proconnect.

Individual

This topic has been closed for replies.

sjrcpa

Level 15

Did they even get a 1099? I thought they weren't issued for SSDI?

EDIT: And Yes I know whether or not you get a piece of paper does not alter the taxability of something.

The more I know the more I don’t know.

BobKamman

Level 15

SSI is Supplemental Security Income, not taxable but with income limits so most recipients don't file returns.

SSDI is Social Security Disability Income, same as Social Security retirement benefits, taxable if there's enough other income. Maybe this was a retroactive payment covering multiple years? I'm not aware of any special provisions for victims of 9/11, but that was 23 years ago.

J

jbest2Author

Level 2

IRS pub. 3920:

For tax years ending after September 10, 2001, disability payments (including Social Security Disability Insurance (SSDI) payments) are not included in income if they are for injuries incurred as a direct result of a terrorist attack (including the September 11 attacks, anthrax attacks, and Oklahoma City attack) directed against the United States (or its allies). However, you must include in your income any disability payments you received or you would have received in retirement had you not become disabled as a result of a terrorist attack.

T

Terry53029

Intuit Community Champion

From pub 3920. Link. https://www.irs.gov/publications/p3920#en_US_201409_publink10005705

Disability Payments

For tax years ending after September 10, 2001, disability payments (including Social Security Disability Insurance (SSDI) payments) are not included in income if they are for injuries incurred as a direct result of a terrorist attack (including the September 11 attacks, anthrax attacks, and Oklahoma City attack) directed against the United States (or its allies). However, you must include in your income any disability payments you received or you would have received in retirement had you not become disabled as a result of a terrorist attack.

Disability Payments

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