I have a supplemental accident plan through Allstate. My work takes the premiums pre-tax. I received a payout from it. Is it taxable and where can I find out more info?

[akpsjones]

Received $1155 payout due to broken arm from the supplemental accidental policy. Since my Employer takes out the premiums I am paying with pre-tax dollars not sure if this is taxable or not. Have not gotten a 1099 or anything like that. Want to know where in the tax code it addresses this and if taxable where do I put it on my return.

[LeeM · Accepted solution]

Yes, since you paid the premiums pre-tax, that payout would most likely be taxable. 

For more information, you can review the "Accident and Health Plan" topic in IRS Publication 525, Taxable and Non Taxable Income linked to here: https://www.irs.gov/publications/p525