Sure. $3000 is taxable no matter what, I agree. What I don't find confirmation for is that the full amount of my disability benefit should be taxable. Usually federal tax related to benefit is up to the max benefit amount it replaces (in this case max employment insurance benefit available - in my case it was $10 000). However i could not find any definitive IRS document one way or the other for this particular situation. That what I was looking for.Section 1.85-1(b) (ii) is very vague in that regard
