turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Do I need to pay taxes on a lump sum long term disability payment?

Lump some payed from employers long term disability not from SSI disability
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

Do I need to pay taxes on a lump sum long term disability payment?

Generally, you must pay taxes on long-term disability payments from an employer-paid accident or health insurance plan.  in other words, if the employer got the tax deduction for the premiums - either paid them as a non-taxable fringe benefit or you paid them thru a payroll deduction but had your taxable wages reduced its taxable. on the other hand, a payroll deduction where you got no reduction in your taxable wages, or the amount was paid by the employer but added to your taxable wages then it's tax free (. ask your employer to make sure.  where the employer paid part and you paid part for which you got no tax-benefit only the employer part is taxable. 

Hal_Al
Level 15

Do I need to pay taxes on a lump sum long term disability payment?

 If you receive a form W-2 or 1099-R, for the income, it is taxable. For a detailed explanation, see:

https://ttlc.intuit.com/community/disability/help/is-disability-income-taxable/00/26023

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies