Is it true that disability income is not subject to federal laws?

Answer by  Chaneygirl (1755)

It depends on the nature of your disability income. Were the premiums for the disability income deducted for tax purposes, then it is taxable. SSI disabilit is can be taxable.

Answer by  Duncan (1124)

I don't believe that is the case. Congress has enacted laws which demand that everyone pay taxes on any income, from whatever source derived. Disability and social security benefits are no different; you should claim them on your income taxes. You should note, however, that deductions exist to offset this tax burden.

Answer by  Darkephoenix (1789)

Disability income is subject to federal taxes as is unemployment income. The level at which you have to file, however, is different than standard stipulations concerning income. The best thing to do int hat situation is find an ACCOUNTANT, not the mall tax preparers and ask about options.