That depends on how you paid the premiums for
the short term disability. If the employer shared in the cost for the premiums,
then yes, the short term disability is taxable. The payments (claim payments)
will be taxable based on the proportion the employer paid towards your
premiums, and the portion paid by you if you used after tax payroll
deductions. If you paid for the premiums entirely by yourself using
after-tax dollars, then the payments (claim payments) are not taxable.
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