LTD claim timing effect on taxes
My wife began her long term disability claim process in Fall 2024. This is through supplemental insurance benefits she had with employer. As of late November, she exhausted her short term disability benefits and because she began the LTD claim process, received her last pay check.
Two questions/issues for filing taxes:
1. The claim was approved in February 2025 and the insurance company will be sending a check to account for backpay since November. (Monthly benefits in 2025 will have taxes taken out.) The timing is awkward and I’m not sure what to expect in terms of tax forms. I’m also uncertain if they will delineate the benefits accounting for 2024 versus those for 2025, and how to report that on tax filing.
2. Somewhat relative to point 1, she received a vacation time payout check from employer in December. (Employer didn’t communicate this in advance.) This may need to be resolved with insurance co as it pushes out the date she stopped receiving payments from them. I’m worried that also affects getting an accurate estimate of how much LTD benefits she received in 2024. Insurance company is notoriously tricky to get info from and thus correct documentation.
Am I overthinking this or misunderstanding anything? We are ultimately talking about a few thousand dollars so I’d rather not delay filing. Perhaps there’s a way to estimate this? Or deal with it in 2025 filing?
