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Category: Tax
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Experience:  over 40 years experience in tax matters
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I was involved in a head on collision in 1993 and had to retire

Customer Question

I was involved in a head on collision in 1993 and had to retire on disabilty retirement from the US postal service. I worked as a letter sorting machine operator and could no longer perform the duties of the position which required periods of standind, walking, pushing and pulling heavy equipment filled with trays of mail.. I did a trial run of my taxes on freetaxusa website. I entered info from my 1099R from Postal service on line58 form1040.line 2a asks taxable amount-1099R has unknown so I left blank and entered line7 distribution code 3(disability) and the freetaxusa software prompted me if I was disabled and i checked yes. software then popu8lated line 2a as zero(not taxable)..I am only 50 yearsv old at this time and my FERSFederal Employee Retirement System handbook shows that my MRA (minimum retirement age is 56). Can you please advise whether my disaBILITY ANNUITY is taxable? I(1099 R form shows my total employee contribution for annuity as $658
Submitted: 6 years ago via Cornell Legal Info Institute.
Category: Tax
Expert:  CGCPA replied 6 years ago.

Welcome to Just Answer. I am here to help you resolve your tax and finance concerns. Please feel free to ask anytime you need extra help.


I will check the IRS regulations and return in a moment.

Expert:  CGCPA replied 6 years ago.

According to the IRS your benefits are taxable but you may also be entitled to tax credits available for the disabled. Here is information direct from the IRS:


Disability Pensions

If you retired on disability, you generally must include in income any disability pension you receive under a plan that is paid for by your employer. You must report your taxable disability payments as wages on line 7 of Form 1040 or Form 1040A or on line 8 of Form 1040NR until you reach minimum retirement age. Minimum retirement age generally is the age at which you can first receive a pension or annuity if you are not disabled.

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You may be entitled to a tax credit if you were permanently and totally disabled when you retired. For information on this credit, see Publication 524.


Beginning on the day after you reach minimum retirement age, payments you receive are taxable as a pension or annuity. Report the payments on Form 1040, lines 16a and 16b; Form 1040A, lines 12a and 12b; or on Form 1040NR, lines 17a and 17b.