Long-term disability insurance is generally considered taxable income. However, the taxability of these benefits depends on whether the premiums for the policy were paid with pre-tax or after-tax dollars.
If you paid the premiums with pre-tax dollars, meaning the premiums were deducted from your gross income, the benefits you receive from the policy will be considered taxable. This is because the premiums were effectively a tax-free contribution to your insurance policy.
If you paid the premiums with after-tax dollars, meaning the premiums were deducted from your net income, the benefits you receive from the policy will not be considered taxable. This is because you already paid taxes on the income used to pay the premiums.
It's important to note that the taxability of long-term disability benefits may also depend on the specific terms of your insurance policy and your individual tax situation. It's always a good idea to consult with a tax professional or financial advisor to determine the tax implications of your long-term disability insurance policy.