What is TAPS? The Texas Association of Public Schools Property and Liability Fund (TAPS) is a self-insurance pool set up under the Texas Interlocal Cooperation Act on September 1, 2001. Membership is limited to public school districts, community colleges and education service centers.
Disability benefits you receive from the Department of Veterans Affairs (VA) aren't taxable and don't need to be reported on your return. However, Military Disability Retirement pay could be taxable if reported on form 1099-R.
If your disability benefits are subject to taxation because your income is above these limits, your disability benefits would be taxed at your marginal tax rate. In other words, you would not pay taxes of 50% or 85% of your benefits, you would probably pay taxes of about 10-15% on 50%-85% of your benefits.SI recipients rarely have to pay taxes, because if they had enough income to be taxed, they wouldn't qualify for SSI.). If you or your spouse have another source of substantial income, it's likely your SSDI benefits could be taxed by the federal government. Here's how it works.