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.
Yet in a couple of situations, benefits that Social Security pays are indeed taxable for federal income tax purposes. One of those situations involves Social Security disability, and although many people end up not owing income tax on their disability benefits, some do.