Solved: I've settled out-of-court for a long-term disability claim. The LTD policy premiums were paid with after-tax dollars. Is the out-of-court settlement taxable?
I've settled out-of-court for a long-term disability claim. The LTD policy premiums were paid with after-tax dollars. Is the out-of-court settlement taxable?
I became disabled and unable to work, and the insurance company paid benefits before eventually terminating benefits. We took them to court, and they settled before the case went to trial.
I've settled out-of-court for a long-term disability claim. The LTD policy premiums were paid with after-tax dollars. Is the out-of-court settlement taxable?
Long-term disability benefits are not taxable when the insurance premiums are paid with after-tax dollars. As the settlement is considered as your long-term disability benefits, it is not taxable. And any legal fees you incurred are not deductible.
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I've settled out-of-court for a long-term disability claim. The LTD policy premiums were paid with after-tax dollars. Is the out-of-court settlement taxable?
Long-term disability benefits are not taxable when the insurance premiums are paid with after-tax dollars. As the settlement is considered as your long-term disability benefits, it is not taxable. And any legal fees you incurred are not deductible.
**Say "Thanks" by clicking the thumb icon in a post **Mark the post that answers your question by clicking on "Mark as Best Answer"
I've settled out-of-court for a long-term disability claim. The LTD policy premiums were paid with after-tax dollars. Is the out-of-court settlement taxable?
I have the same situation. My premiums were paid entirely by me with post tax dollars. However, just to verify that I won’t owe tax on the out-of-court settlement, I’d like to find this same info on the IRS website. Can someone point me to this? I’ve looked high and low. Thanks.
I've settled out-of-court for a long-term disability claim. The LTD policy premiums were paid with after-tax dollars. Is the out-of-court settlement taxable?
**Answers are correct to the best of my ability but do not constitute tax or legal advice.**
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