Disability income taxes

[Olbidness]

I had a major heath problem last year and was drawing short-term disability benefits from work. I ran the numbers and concluded that everything looked good, so July of this year retired. At the urging of my employers HR manager I also applied for long-term disability benefits. So last week I get a check from the disability insurance people, quite a shock I must say. But I have a policy, when someone gives me money, I take it.

I talked to the insurance rep and was told that since my employer paid the premiums that any benefits paid to me would pre-tax. I haven't talked to my CPA yet, but I think I'm going to have to file quarterly. Any thoughts?

 

[rdy2go]

We were given the opportunity to pay the tax on the premiums so as not to get taxed on the benefits where I was employed. I elected to do that and it came in handy when I was out for several months. HR explained it every year during benefits enrollment.

 

[pb4uski]

Try this: LMGTFY

 

[exnavynuke]

Yep, if your employer pays the premiums, the payments are generally taxable income. If you pay all of the premiums, the payments are tax free. https://turbotax.intuit.com/tax-tip...-claim-payments-considered-earnings/L0Yn4IiYr

 

[Olbidness]

Try this: LMGTFY

Yep, I already had googled it. Thanks

Looking at a old pay Stub and saw 2 entries for imputed income. Its’s clear one is for life insurance, not sure about the other.

I’ll talk to the CPA, I ‘m sure I’ll get a 1099 or something similar to tell me more.

Always something new to learn.[emoji4]