A very important part of making a living as a person with a disability is to understand the availability and the availability of your state's disability income programs.

About state disability income:

While having state disability income it could be reduced by having a higher income in the 3 preceding months, if your disability insurance coverage policy will last for a total of 6 months or less.

-No additional cost to the taxpayer. -Allows the taxpayer to have disability income when they have prior years of employment. -Should be considered on relocation.

Pros of state disability income:

Once you are approved for state disability income, you qualify to receive up to 100% of your average earnings for 2 years preceding the date you become disabled. Payment is added to disability income.

-Tax exempt. -No Deductions. -Ability to use social security retirement funds to pay the state disability payment. -Individuals with moderate incomes are eligible.

Pros of state disability income:

State disability income retirement benefits are generally taxable at 100 percent of the state's rate. There are certain amounts that qualify as disabled retirement benefits, & are taxed at 5 percent.

Cons of state disability income:

-You can have only a couple of sources of income & use this disability income as your primary form of income, which means would only be limited by personal exemption.

In state disability income minimum amount of taxable income that a person is required to report on his income tax return is generally determined by the total amount of "extraordinary income" for year.