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 the premiums were paid by your employer and were not included in your taxable income, the disability is taxable. If you paid the premiums out of your own pocket or with payroll deductions that came out of your after-tax income, the disability is not taxable.