It depends. Disability income may or may not be taxable, depending on who paid the premiums. If your disability is taxable, the taxable amount is generally included on your W-2 or Form 1099.
If you and your employer share the cost of a disability plan, you are only liable for taxes on the amount received due to payments made by your employer. So, if you pay the entire cost of a sickness or injury plan with after-tax money, you do not need to pay tax on payments you receive under the plan as income.
If your employer pays half the cost of premiums and does not deduct these payments from your pay, then you most likely need to report half the payments received as taxable income. Reimbursement of medical costs you’ve paid for after the plan was established are generally not taxable, but may reduce the amount of any medical costs deduction.
For more info see this awesome TurboTax article Are Short-Term Disability Claim Payments Considered Earnings?
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