Drake Tax - 1040: Social Security Disability Insurance (SSDI) Payments for Terrorist Attack Victims

How to report SSA-1099 for disability payments for a victim of a terrorist attack

If the SSDI is not taxable, the IRS does not require this information to be reported anywhere on Form 1040. Be sure to review the IRS guidelines for further details. From Publication 3920 Tax Relief for Victims of Terrorist Attacks (page 2):

"For tax years ending after September 10, 2001, disability payments (including Social Security Disability Insurance (SSDI) payments) are not included in income if they are for injuries incurred as a direct result of a terrorist attack (including the September 11 attacks, anthrax attacks, and Oklahoma City attack) directed against the United States (or its allies). However, you must include in your income any disability payments you received or you would have received in retirement had you not become disabled as a result of a terrorist attack."

For more information, visit IRS Publication 3920.