Short term disability insurance benefits may be taxable or tax-free depending on how the premiums are paid. If the premiums are paid with after-tax dollars, the benefits are generally not taxable. However, if the premiums are paid with pre-tax dollars, the benefits are typically taxable as income. It's important to check with the specific insurance provider and review the policy details to understand the tax implications of the short term disability insurance plan. Additionally, if the employer pays for the short term disability insurance, the benefits are usually taxable as income, whereas if the employee pays for it with after-tax dollars, the benefits are often tax-free. It's advisable to consult with a tax professional or financial advisor for personalized guidance on the tax treatment of short term disability insurance benefits.