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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)

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


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