*Ostroff, Fair and Company>>>United States Taxes

Awarded disability and had to indulge in ira assets to live on..any tax breaks for me?

The IRA distribution is taxable income. That is unavoidable. However, one of the exceptions for the 10% penalty is "Total and Permanent Disability". See Form 5329.

http://www.irs.gov/pub/irs-pdf/f5329.pdf...

Generally the distribution from your IRA are taxable. If you are less than 59 1/2 years old you are subject to a 10% penalty however disability is an exception. You could have some deductions as a result of any modifications that were required to your residence due to your disability. Those get a little difficult to determine so you may wish to seek professional advise in that regard.
The good news is that you don't have to pay the 10% early withdrawal penalty. The bad news is that you still have to pay income tax.

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