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Level 5
October 7, 2019
Solved

My wife was pregnant, received disability pay is it tax free?

  • October 7, 2019
  • 3 replies
  • 44 views

My wife is a w2 employee, received 10k in disability pay (maternity benefit from the company). It was paid out from the company she works for.  Basically she had X weeks paid at Y% post delivery. I think this was verified thru a 3rd party (UNUM) but was paid out by the company she works for.  

 

Is this tax free?

How do I exclude it from income, if so? (Federal)

How do I exclude it from income in CA if it is allowed to be excluded? 

    Best answer by Critter

    Yes ... it is fully taxable. 

    3 replies

    Critter
    Level 15
    October 7, 2019

    Depends on who paid the premiums for the  Short Term Disability policy payout she got ... it is taxable income if the employer paid it ... she will get a W-2 form for it in January with the Third Party box marked in box 13. 

    Level 5
    October 9, 2019

    @Critter Premium was paid by the employer. Received a W2 already and the 3rd party box was NOT checked. 

     

    So is it fully taxable then? 

    Critter
    CritterAnswer
    Level 15
    October 9, 2019

    Yes ... it is fully taxable.