What document will a taxpayer receive regarding their disability pension?

A taxpayer receiving a disability pension will typically receive a 1099-R form. This form is specifically used to report distributions from pensions, annuities, retirement plans, IRAs, or insurance contracts. Since disability pensions are considered a form of retirement income, the 1099-R is the appropriate document that details how much was distributed to the taxpayer during the tax year.

Receiving this form is crucial because it helps the taxpayer accurately report their income on their tax return. The amounts reported on the 1099-R can influence the tax liabilities, which is why it is essential for taxpayers to understand the information provided in this document.

In contrast, the W-2 form is used for reporting wages and salaries from employment, the 1040 tax form is the actual tax return form where all income is reported, and the K-1 is a form used to report income from partnerships. None of these would be used for reporting disability pension income.