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srbrad61
New Member

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

 
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8 Replies

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

Who paid for the disability insurance?  You or your employer?
srbrad61
New Member

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

I paid

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

Disability payments received are not reported on your tax return when you have paid for the disability insurance.

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

unless you paid with pre-tax dollars. Ask your employer.
Max Slew
New Member

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

I read some replies on the community info...I receive my old salary plus from the Disability Insurance coverage as part of the benefits package. I do remember we were asked before or after-tax...plus we had a choice to add to our salary amount IF we paid which I did. It was only a few dollars. Where can I find out more about whether there is any tax break on this total income or partial amount?

 

Max Slew
New Member

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

I know we had money withdrawn for insurances on our payroll, what if I paid extra on the premium? Is there a different tax status for % self-paid insurance or is it still considered corp. income?

Carl
Level 15

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

Basically, if the premiums were paid with taxed dollars, then the benifit payouts are not taxable income to the recipient. However, if the premiums were paid with non-taxed dollars then the payouts are taxable income to the recipient. If taxable, you'll probably receive a 1099-R at tax filing time.

If the payout is not taxable, then box 2 of the 1099-R will show the taxable amount as zero, or will have the "taxable amount undetermined" box checked.

If I received funds for disability through a private insurance through work, are the funds taxed and is there no tax break for the funds?

The best way to get your answer is to ask the people who are paying out the money ... ask your employer and the insurance company what tax form will be sent in January (if any) and inquire how much will be taxable. 

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