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Ed Johnson
Ed Johnson, Tax Preparer
Category: Tax
Satisfied Customers: 10760
Experience:  GPHR Cert; U.S. Treasury Tax Advocacy Panel appointee
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My wife received payments from Aflac for benefits under an ...

Customer Question

My wife received payments from Aflac for benefits under an Accident policy and Intensive care policy that was provided for her at no cost by her employer. Most of the payments were for specific injuries or treatments, but a portion of benefits was a daily benefit for the time she was out of work. Is the payment for this daily benefit to be included as income. Is any portion of the other benefits for injuries or treatments to be included as income?
Submitted: 8 years ago.
Category: Tax
Expert:  Ed Johnson replied 8 years ago.

Did AFLAC issue a W-2 or 1099? if so, what were the entries in the boxes.

Generally, these type of payments are not taxable income becasue they are payments for sickness or injury.


Customer: replied 8 years ago.
No W-2 has been received and it is my understanding, though I do not know this for a fact, that Aflac does not issue w-2's for payments under these policies. But my question is, regardless of whether a w-2 is issued, does the payment of a specific benefit under the Accident policy for days out of work equate to 3rd party sick pay or short term disability benefits which would be taxable, even though the poicy is not a short term disability policy?

thanks, joe