A recent federal change may exempt certain disability pensions paid to retired first responders from taxable income beginning in 2027; the relief is aimed at service-connected disability payments from qualified first responder plans.
Taxpayers should confirm whether their specific pension or annuity meets the statute’s qualification rules (since not all disability payments qualify), watch for IRS guidance on reporting and Form 1099R treatment, and consult their tax advisor to adjust withholding or estimated tax payments and preserve documentation—while remembering state tax treatment may differ.
