State Service Connected Disability Payments Held Non-Taxable

Posted by James AspellApr 06, 20230 Comments

A Connecticut Federal District Court has held that State of Connecticut service-connected disability benefits are not subject to income tax under federal law.  Judge Dooley ordered a refund of taxes paid by the plaintiff.  Those of you who have clients receiving these benefits may wish to bring their attention to this decision, keeping in mind that it may be appealed. For those interested, the case is Kiczuk v. United Sates of America, Case 3:21-cv-00707(KAD)