Retirement Savings and Benefits
Questions and comments about IRAs, 401k accounts, social security, and other forms of retirement savings and benefits.
SSA disability payments due to terrorist attack
Posted by: motax, May 19, 2017 06:22PM
I know that SSA disability benefits that are the direct result of a terrorist attack (i.e. 9/11) are not taxable. But, will the SSA still show the payments on form 1099-SSA? I assume that the taxpayer would then have adjust the gross amount to exclude any non-taxable payments. I just don't know what indication is made on the tax return to show that the benefits are non-taxable.
Any thoughts?


Re: SSA disability payments due to terrorist attack
Posted by: Art, May 19, 2017 06:40PM
I would guess it would be treated as ssi and not reported.

Re: SSA disability payments due to terrorist attack
Posted by: motax, May 20, 2017 01:07PM
I think what would be the case, also. But, SSI is not even reported on a 1099-SSA, so that would make sense.

Usually in these cases the IRS advises to make some notation on the return that a special exemption applies.

Although these notations are often missed by IRS processing personnel, I would think that some guidance would be given to explain why the gross amount of benefits is not being reported on line 20a.









Sorry, only registered users may post in this forum.