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I'm getting a large amount of money from the IBEW retirement…

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i'm getting a large amount...
i'm getting a large amount of money from the IBEW retirement fund. retroactive to first day of my disability, April 2007. this money is distributed from my retirement account, but I'm getting it early because of my disability. Is it then considered disability money, or classified as a pension income? I will also be receiving a monthly benefit amount. If this proves to be taxable what should i hold back for taxes on an amount of 110,000? i am currently on ssi disability and haven't had to file taxes for the last 10 years, not enough income. a percentage and an amount included in your reply is appreciated. thanks in advance
GREG B
Submitted: 2 years ago.Category: Finance
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Answered in 4 hours by:
3/4/2016
Financial Professional: Lev, Tax Preparer replied 2 years ago
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,384
Experience: Personal Investment, Tax Preparation
Verified

As a member of the I.B.E.W. - you are eligible to apply for a normal retirement pension if they have five (5) or more years of continuous good standing at the time of their application for pension, and have reached age sixty-five (65).

Under certain circumstances you may apply for either for normal pension, OR early retirement pension, OR disability pension.

So if you are below 65 and did not apply for early retirement pension - that woudl be your disability pension.

If you are above 65 - that is your normal retirement pension.

Let me know if you need any help with reporting on your tax return.

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Financial Professional: Lev, Tax Preparer replied 2 years ago

I am getting a message - Customer has requested a Live phone call 8 Mar 2016, 9:54 AM

Payment for this service failed, please do not fulfill yet. We will attempt to reach this customer to fix the situation.

8 Mar 2016, 10:01 AM

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Customer reply replied 2 years ago
is the disability pension taxable? if so how much should i set aside to pay this tax?
Financial Professional: Lev, Tax Preparer replied 2 years ago

Yes - disability pension is taxable and it is taxed the same way as wages as long as you have not reached age sixty-five (65).To estimate your expected tax liability we will need to know

- TOTAL income

- filing status

- possible deductions and credits you normally claim.

For tax rate schedule - see here

http://taxfoundation.org/article/2016-tax-brackets

Fort instance - if you are single - taxable income between $37,650 to $91,150 is taxes at 25% rate,

etc.

Let me know if you need help with estimations.

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