Are AFLAC short term disability payments taxable?

[Kathyo525]

I had short term disability that I paid for but it was deducted from my pay check. The company I worked for sent me a W4 form for me to submit with my taxes but, I paid the monthly payments- not my ex-employer. 

Do I include the Aflac w4 or not? If I include it, I have to pay taxes....money I don't have since I'm now on long term disability. 

[ThomasM125]

You should enter the W-2 form in TurboTax as the IRS has a copy of it and will look for it on your tax return. 

To the extent you paid the premiums on the policy, you should not be taxed on the benefits you received. So, if you paid 100% of the premiums, then none of the benefits would be taxable. It is possible that when your employer deducted the premium payments from your pay that they also deducted the same amount from your reported wages on your W-2 form. If so, then that portion of the benefits you received would be taxable.

If you need to reduce the reported wage income on your tax return, you can do the following:

1. From the Federal menu in TurboTax find Wages and Income 

2. Find Less Common Income

3. Choose Miscellaneous Income, 1099-A, 1099-C

4. Choose Other Reportable Income

5. Enter a description of the adjustment and the amount as a negative number