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.
Most workman's compensation disability benefits are not taxable. There is, however, an important exception to this basic rule. According to the IRS, the tax exempt rule does not apply if you receive retirement plan benefits tied to your age, length of service or any prior contributions you made.