+123 votes
Is disability insurance income taxable? I recently started receiving disability insurance income and I'm wondering about the tax implications. Can anyone clarify if disability insurance income is taxable?
by (460 points)

1 Answer

+5 votes
Best answer
Disability insurance income may or may not be taxable, depending on various factors. If the disability insurance premiums were paid with after-tax dollars, the benefits are typically not taxable. However, if the premiums were paid with pre-tax dollars, the benefits may be taxable. Additionally, if the disability insurance was provided by your employer and the premiums were paid by the employer, the benefits are generally taxable as income. It's important to consult with a tax professional or refer to IRS guidelines to determine the specific tax implications of your disability insurance income. Always seek professional advice for personalized tax guidance.
by (460 points)
selected by