@Rolex2001
You’re replying to a 4+ year old discussion and you haven’t the facts that apply to your situation.
I double checked and I was wrong about the 1 year rule, but the important difference is who paid for the disability insurance.
If the employer paid the premiums, this is considered “wage replacement” and the disability pay is taxable and is earned inomce, up until the employee reaches retirement age. If payments continue after retirement age, the income is unearned.
If the employee paid the premiums after tax, the income is not taxable at all and is not earned income or compensation for retirement contributions.
