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audor
New Member

Disability Income/Withholding Reporting

My wife received disability insurance income last year.  The premiums were paid by her employer, but the payments came directly from the disability insurance company who also withheld Medicare and Social Security taxes per a summary sheet her employer received from the insurance company; however, the insurance company provided no W-2 or 1099 for that income and it was not included on her W-2 from her employer.  The insurance company says it is the employer's responsibility to include the income and withholding's from the benefit payout on the employer's W2 (hence why they provided the summary to the employer); the employer and their accountant finally responded that since they were not the payer of that income or taxes, they could not include the disability on her W2. 

 

Basically, both companies are claiming it is not their responsibility, and I'm stuck with unreported income and tax withholding.  I know this is the first time her employer has had to deal with a disability claim, so I am assuming the insurance company is correct; however, what do I do now? 

 

Yes, I filed for an extension and paid the estimated federal and state income taxes on the disability income.

1 Best answer

Accepted Solutions
tagteam
Level 15

Disability Income/Withholding Reporting

You will have to take this issue up with the respective companies.

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1 Reply
tagteam
Level 15

Disability Income/Withholding Reporting

You will have to take this issue up with the respective companies.

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