Any IMRF disability benefit payments a member receives will be subject to federal income tax, but a tax credit may be claimed by some disabled members.
For more information on this tax credit, the member can:
Call 1-800-TAX-FORM (1-800-829-3676) and request IRS Publication 524, ”Credit for the Elderly or the Disabled”
Download and print IRS Publication 524, ”Credit for the Elderly or the Disabled,” or
Contact a tax advisor.
IMRF disability benefit payments are not subject to Illinois state income tax. If the member is a resident of another state, the member should check with his or her state’s Department of Revenue to learn whether he or she will pay that state’s income tax on IMRF disability benefits.
IMRF will report the disability benefit payments as income to the Internal Revenue Service. We also will send the member the appropriate forms for completing his or her income tax return.