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Anne, Master Tax Preparer
Category: Tax
Satisfied Customers: 2340
Experience:  Enrolled Agent with 25 Years Experience specializing Individual and Small Businesses
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I am a widow of a Pittsburgh Firefighter who was on disability

Customer Question

I am a widow of a Pittsburgh Firefighter who was on disability pension. I received a letter from the IRS that I had to supply documentation to prove I don't have to pay taxes IF my husband paid premiums for the income insurance plan provided by his employer. I am to send a signed payer statement explaining the portion of the total premium he paid. I was always told that I didn't have to pay taxes on the $413.00 a month widows pension. They went back to 2013 tax. I forgot to put the amount on my tax form. So, I sent them the 1099 and that is when they sent the second letter.
Submitted: 5 months ago.
Category: Tax
Expert:  Anne replied 5 months ago.
HiI'm Anne. I've been preparing taxes for 28 years and I'll be happy to help you. If your husband started drawing the disability pension before his full his retirement age, AND passed before his full retirement age (as defined by Social Security, link below): Per 146.32 Firefighters.Duty disability payments paid under a municipal statute to disabled firefighters prior to their reaching normal retirement age are excludable from gross income. If the disabled firefighter dies prior to normal retirement age, the benefits paid under the statute to the surviving spouse arc also excludable. §§1.61–2, 1.104-1. (Secs. 61, 104; 4 Code.)Rev. Rul. 80-14, 1980-1 C.B. 33 Full Retirement Age as defined by Social Security: If your husband had reached his full retirement age, the pension is still excludable as long as the pension is NOT based on years of service: 146.33 Firefighters; service-connected disability. A pension received by a disabled firefighter under a state statute that creates a rebuttable presumption the disability was service connected is excludable from gross income to the extent the pension is not attributable to length of service. §1.104-1. (Sec. 104, ’86 Code.)Rev. Rul. 85-105, 1985–2 C.B. 53. If my answer has been helpful to you, please take the moment to rate positive by clicking on the stars.It is ONLY through positive ratings that we are compensated for our time and knowledge. Thank you for choosing justanswer.
Expert:  Anne replied 5 months ago.
HiI was just checking back to see if you had any other questions or concerns that I could help you with. If you have no other concerns or questions please don't hesitate to post them here and I'll be notified. If not, then please take the few seconds to rate positive so that I may be given credit for working with you. Thank you for choosing justanswer.