Disability Benefit T

Disability Benefit T means:
the income paid under a disability policy that is not covered under workers' compensation. It is usually expressed as a percentage of the insured's income before the disability, but there may be a limit on the amount and duration of benefits. Generally, if a person retires on disability, pension or annuity income is taxable. Disability benefits are not taxable if received for loss of income or earnings capacity due to an injury covered by a no-fault automobile policy. Disability income may reduce the tax credit for the elderly in some situations. See elderly or disabled tax credit. Former IRC (check if this IRC provision is current here) §22(e)(3).