FAQ – Are My Disability Benefits Subject to Taxation? | St. Pete Beach Long Term Disability Attorney

The basic answer to this question depends on how you paid for your policy. The general rule is that if you paid for your policy with pretax dollars, you are disability benefits are taxable.

Conversely, if your benefits were paid with after-tax dollars, then you’re disability benefits are not taxable.

So, if you pay or your employer pay for your disability policy as part of an employee benefit package, your disability benefits are taxable. You will probably be sent something from a disability insurance company to show the total amount of your benefits, which you will have to use in your tax-preparation.

If you have any questions, please give us a call at 727.894.3188 or contact us online by clicking here.

  • 2.0 (1 person)
    Be Sociable, Share!

    Leave a Reply