After suffering a debilitating injury, Ahmad (47) retired on disability after teaching high-school math for several years. He had not yet reached the minimum retirement age for the district where he taught. If Ahmad's employer paid the premiums on his disability insurance policy using pre-tax dollars, how does he report the disability benefits reported to him on Form 1099-R

Disability payments are taxable only if the insurance premium was paid by Ahmad's employer (which happened in this case). If Ahmad had paid the premium himself, then the disability premiums would not be considered income. If the premiums had been paid by both Ahmad and his employer, then only the proportion paid by Ahmad's employer would have been taxed.

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andromache andromache · Answer 2 · 2021-11-23T12:19:06+01:00

He should report the disability benefits reported to him on Form 1099-R as taxable wage income reported on Form 1040, line 1.

The following information should be considered:

Since Ahmad (47) retired on disability after teaching high-school math for several years.
Also he does not reached to the minimum retirement age.
Under this given situation, the disability should be reported as the taxable wage income that comes under Form 1040, line 1.

Therefore we can conclude that He should report the disability benefits reported to him on Form 1099-R as taxable wage income reported on Form 1040, line 1.

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