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JOHNNYCPA
Level 4
March 9, 2026
Question

SOCIAL SECURITY DISABILITY NOT TAXABLE DUE TO INJURIES 911- VICTIM COMP FUND

  • March 9, 2026
  • 2 replies
  • 16 views

Is Social Security disability benefits are due to injuries directly resulting from the September 11th attacks, then those benefits are not taxable? Is this Correct?

This is part of the Victims of Terrorism Tax Relief Act.

If SS disability not taxable,  how do you show it on the taz return?

John

2 replies

Just-Lisa-Now-
Intuit Community Champion
March 9, 2026
♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
ljr
Level 9
March 9, 2026

publication 3920

only nontaxable until they hit full retirement age

how to do on proseries depends on the income on the return. if you have enough other income to keep it at 85% then input it on regular ss input then you can do a negative on other income line to back it out.

otherwise you can to an in and out on the ss worksheet but prepare client for irs notice looking for it

warning : if you do the backout on other income you have to fix NYS return or it will back it out twice 

 

 

 

 

 

JOHNNYCPA
JOHNNYCPAAuthor
Level 4
March 10, 2026

regardless, there will be an IRS notice that there is an underpayment of income  (social security disability).