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Taxation of Disability Annuities
(Posted January 5, 2014)
Question 1094: Are Tier 1 and Tier 2 benefits taxable if I'm receiving an Occupational Disability Annuity?
Answer: Yes, both tiers are subject to Federal income tax. The Railroad Retirement Board will send you RRB-1099 forms each year to use in filing the appropriate tax forms.
If your State has an income tax, check with the State agency that administers the income tax law to see if your annuity payments are also subject to State income taxes.
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