Q. I am 61 years old and have 30+ years as a CSRS employee. If I received disability benefits on retirement, are they tax-free?
A. Disability annuities aren’t tax-free. They are considered to be ordinary income. FYI: Because you have at least 22 years of service, there wouldn’t be any difference between the amount of a disability annuity you’d receive and what you’d get in a regular retirement annuity.
