I received the maximum amount of short-term and long-term disability leave benefits from my employer due to an unfortunate personal incident in early 2021. The short-term leave offered by my employer was a maximum length of 6 months, starting in 7/21 and ending 12/21. The benefit payments for my short-term leave had federal and state income tax removed prior to me receiving the payments. The long-term leave offered was a maximum of 12 months and started 1/22 and ended 12/22, and these payments did not have any income tax applied or removed prior to me receiving payments. I am unsure of how to and how much taxes to apply to the long-term benefits payments I received throughout 2022, because I am not receiving conclusive answers from my employer and the third-party insurance company that worked with my employer to provide the monthly payments. They are unable to provide me with an explanation as to why federal and state income taxes were not deducted from my long-term disability payments. I read somewhere, if you receive disability benefit payments for 6 consecutive months, the subsequent disability benefit payments from an employer are not subject to either federal or state income tax afterwards, but I'd like to be certain. Just to provide some more background information on myself, I am a resident of New York and would be filing as a single person. As no federal and state taxes were deducted in 2022, I used on online tax calculator to determine the maximum projected amount of federal and state income taxes based on the long-term disability benefit payments I received, paid that estimated amount through TurboTax online in April 2023, and filed for an extension while I gathered more information. Unfortunately I was unable to find any answers. Please reach out if there are any details that would help in finding a solution to this conundrum. Thank you!
