Do You Get a 1099 for Disability Income?
Sometimes. It depends on the type of disability income.
If you receive Social Security disability benefits (SSDI), you generally do not receive an IRS Form 1099. Instead, Social Security generally issues Form SSA-1099. If you receive Supplemental Security Income (SSI) only, you generally do not receive Form SSA-1099 because SSI is not taxable.
If you receive disability retirement payments or certain permanent and total disability payments from a retirement plan or insurance contract, you may receive Form 1099-R.
If the disability payments are treated as wages, such as certain taxable employer-paid disability payments or third-party sick pay, they may be reported on Form W-2 instead of a 1099.
If the payments are workers’ compensation or similar benefits for job-related injury or sickness, they are generally not taxable, so you generally would not expect a taxable Form 1099 for those benefits.
So, the safest answer is: yes, you may get a 1099 for some types of disability income, but not for all disability income. The reporting form depends on the source and tax treatment of the payment.
State Law Note
State income tax treatment of disability benefits can differ from federal tax treatment. The controlling authority is the applicable state revenue department or tax agency.
Sources
IRS — Publication 525, Taxable and Nontaxable Income
IRS — Publication 907, Tax Highlights for Persons With Disabilities
IRS — Instructions for Forms 1099-R and 5498
IRS — Life insurance & disability insurance proceeds FAQ
IRS — Publication 15-A, Employer’s Supplemental Tax Guide
IRS — Publication 915, Social Security and Equivalent Railroad Retirement Benefits
IRS — Social Security income FAQ
Social Security Administration — Get tax form (1099/1042S)
Social Security Administration — Replacement form SSA-1099/1042S FAQ