You are here:

Tax Law (Questions About Taxes)/Long Term Disability Payments


I received long-term disability payments from a third party insurance company during 2013. This LTDI was part of a health insurance package from my former employer. I reviewed IRS Publication 525 (Taxable and Non-Taxable Income) and found no mention of the tax status of LTDI payments. I even called the IRS twice and got 2 different answers. Can you tell me if the payments I received in 2013 are taxable for Federal income tax purposes? Thank you.

generally, if you paid for the premium with after tax dollars then the receipts are not taxable, if you paid for it with pre tax dollars (or the employer paid) then it is taxable.

sounds like employer paid the premiums and you received replacement income for wages... I would assume this to be taxable.

good luck. hope you are back at work.

ps. what does the HR department say?  

Tax Law (Questions About Taxes)

All Answers

Answers by Expert:

Ask Experts




Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).


19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

AICPA, CSCPA (Ct society), National Tax,

a bunch.

MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

©2016 All rights reserved.