turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

DMB123
Returning Member

Is long-term disability benefit considered to be taxable income? My wife has cancer and received benefits in 2023.

The only deduction made to her checks was for social security.   I feel like it's taxable income but am looking for confirmation.
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies
DawnC
Employee Tax Expert

Is long-term disability benefit considered to be taxable income? My wife has cancer and received benefits in 2023.

If her employer paid the premiums, yes, it is taxable. 

 

Disability paid by an insurance company for things like lost wages, loss of limb, or loss of sight may or may not be taxable, depending on circumstance:

 

  • If the premiums were paid by your employer and weren't included in your taxable income, the disability is taxable.
  • If you paid the premiums out of your own pocket or with payroll deductions that came out of your after-tax income, the disability isn't taxable.
  • If you and your employer jointly paid the premiums, only the disability amount covered by your employer's payments are taxable.

Is disability income taxable?

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

Is long-term disability benefit considered to be taxable income? My wife has cancer and received benefits in 2023.

That depends on how the policy premiums were paid.  If you bought a private policy and paid the premiums after-tax, then the benefit is not taxable. If the policy was furnished by her employer, and either the employer paid the premiums as a tax-free benefit, or she paid the premiums as a pre-tax deduction (or a combination of both) then the benefit is taxable income, and should be reported on a W-2, either from the employer or from the LTD company.  (They might or might not withhold income taxes, but the income is taxable if it is on a W-2.  If no income taxes were withheld, you might be underpaid and owe a big bill and penalty.)

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies