It all depends on who paid the premiums . If on the last payment of premium your dad can prove that he paid the premium with post tax dollars then the benefit is tax-free. If however it was paid by the employer (with pre-tax dollars) then he is liable for the taxes on the benefit. I ran into that and because my employer changed how they deducted the payment for income continuation insurance for everyone- not just me- I do not pay taxes on the benefit which has been quite helpful. Charlie At 11:32 AM 10/4/00 -0400, you wrote: >At 11:21 AM 10/04/2000 -0400, you wrote: >>My Dad is planning his retirement. He mentioned the other day that he was >>going to try to get his disability retirement income to be waived of income >>taxes. I have never heard of this before. Have any of you on the list been >>successful in getting a waiver on paying taxes on your disability retirement >>income? I told him that I would run it by you all and find out. Thanks >>much, >> >>Jen, Dad w/ PD 55/39 > >Hi Jennifer, >Greg Sterling would know the answer to that! > >I know that with retired Military Disability Pay >either all or a part of it is not taxed, but since >my husband's retirement is just for length of service, >and not disability, I can't answer that for you. >Good Luck to you and your Father. > >just me, >Marjorie Charles T. Meyer, M.D. Middleton, WI PD DX 12 years (at age 44) Age 56