I received a 1099 Misc for a lump sum cancer insurance policy claim. The insurance is paid by me through pre-tax payroll deduction. Is this taxable income.
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I received a 1099 Misc for a lump sum cancer insurance policy claim. The insurance is paid by me through pre-tax payroll deduction. Is this taxable income.

 
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Employee Tax Expert

I received a 1099 Misc for a lump sum cancer insurance policy claim. The insurance is paid by me through pre-tax payroll deduction. Is this taxable income.

Yes, the lump sum benefit will be taxable income if you paid the premium with pre-tax monies. See below links.

If premiums were paid with after-tax monies, then the lump sum would not be taxable.

https://www.growingfamilybenefits.com/cancer-insurance-taxable/

https://www.irs.gov/publications/p525/ar02.html

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