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?

billick · ‎January 28, 2021

IRS just told me that it is not taxable. So I don’t need to report this 1099-MISC with my TurboTax return then?

TomD8 · ‎January 28, 2021

Then you may want to contact the issuer again and request a corrected 1099-MISC. That's because a red flag will go up if the income on your tax return does not match up with the income reported to the IRS. Remember that the IRS receives a copy of the 1099-MISC.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.

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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?

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?

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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?

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?

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