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dylatess, ATTORNEY
Category: Social Security
Satisfied Customers: 5156
Experience:  37 plus years of SSD practice
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I retired 2014 from the post office Disability retirement. I

Customer Question

Good morning, I retired 2014 from the post office Disability retirement. I was told during my paperwork process that I did not have to pay NC state taxes. Now i'm being told that's not correct because of the Bailey rule.I don't qualify. Well looking at the list of qualifyig retirement plans I fall under that with my disability and the reason for my retirement. can you clarify??
JA: The Expert will know what to do. Is there anything else the Expert should be aware of?
Customer: no that's it, I had to file an extention,
Submitted: 6 months ago.
Category: Social Security
Customer: replied 6 months ago.
Expert:  dylatess replied 6 months ago.

In general, disability benefits are not taxable. However, if your have combined income from disability and other sources or income or if you are married and your spouse has other sources of income and your combined income exceeds $35,000, you do have to pay state taxes. Accordingly, you should consult with a tax preparer or CPA to determine if you need to pay. Thanks for understanding. I always hate to give an answer that you may not want to hear. But I hope you appreciate that I must respond based on the law. Thanks in advance for rating me.