Is private long term disability insurance taxable in Virginia? (It is federally taxable, but TT state questions imply it might not be taxable in Virginia). Thanks!

[MaryD]

Hi,

As of 2014, out of pocket long term disability insurance payments may not be claimed as a tax credit in VA.

Simply follow the instructions on your VA 760.

[bdblack0924]

Just to be clear, I was asking about the treatment of LTD insurance benefit payments not paying LTD premiums.  The answer still the same?  Thanks.

[MaryD]

Sounds like those are fully taxed if you are paying for the policy yourself out of your own pocket.  Here is a helpful link.  <a rel="nofollow" target="_blank" href="https://www.ameriprise.com/research-market-insights/tax-center/tax-planning/taxation-of-disability-i...>

The portion of LTD benefits you receive that is paid by an employer is taxable to you. Federal, state, and local taxes are withheld; Social Security and unemployment taxes are excluded.
The portion of LTD benefits you receive that is paid by you is tax-free, except if you pay with pre-tax dollars.

[MaryD]

Hi,

As of 2014, out of pocket long term disability insurance payments may not be claimed as a tax credit in VA.

Simply follow the instructions on your VA 760.