taxed on SSDI - should LTD company cover this?

[Smee57]

My wife has LTD benefits (not taxable income). As is common, they made us apply for SSDI. Her SSDI is taxed, and I get a W-2.  All numbers hypothetical for easy math.

Her LTD was cut in half from $2000/ month to $1000 when she started getting $1000/ month SSDI.

My question is, if we are taxed at 10%, and she gets $1000 / month from SSDI, we pay $100 per month. Surely, this should be repaid / covered by the LTD company? 

[MaryK4]

The Long Term Disability is a contractual agreement-  as in your case, you can be required to reduce your LTD by any social security disability you receive.  There is no law that requires the LTD to pay the tax on the SSDI, but you may want to review your contract to see if such a provision is included.  Have you contacted the company to ask if this is a possibility?