I don't know if this is the best practice, but it has worked for me for over 10yrs without any notices. What I do, is to report SSDI as usual and if there is a taxable portion then I will reverse the taxable portion on Form 1040, Schedule 1, Line 8z Other Income and add "Pub 3920 (9/11WTC) See Stmt #' and write a brief description for the reversal. Just be careful you don't double up on the reversal on the NY return when transmitting returns. What I do is to transmit the Federal first and wait until it is accepted and then I would delete the SSDI entirely from the NY return so that the FAGI on the state will agree to the AGI on the Federal. The reason why I do it like this is to prevent any NY letters asking why the AGI's don't agree. As I said earlier, it may not be the best practice, but this was the only 'work around' I came up with and it has worked for me for 10yrs without receiving any letters. LMK if you come up with a better method.
------------------------------
Dennis M Lee
------------------------------
Original Message:
Sent: 04-09-2024 01:38 PM
From: Deborah Siegel
Subject: WTC victim exclusion of Disability income
What is best practice for excluding SSDI for WTC victim on 1040 to help eliminate IRSfollow up notices. Also disability pension for general responders (non essential workers). Pub 3920 provides no suggestions.
------------------------------
Deborah Siegel
CPA
Bayville NY
------------------------------