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You must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer:
Yes, this is quoting the IRS statute. I paid the premium, it is not a cafeteria plan, but the premium itself was not taxed. That is my confusion.
Then it is not taxable to you now. If you did not have the amount you paid subtracted from your wages and the employer did not pay the premiums out of their pocket for you then you were taxed on the premiums. Even if you took the money out of your pocket and gave it to them to pay the premium, you did it with money that was already taxed. Unless the employer paid for it with their money or, they used your money but did not subtract it from the wage amount that gets listed in your Box 1 amount on your W2, it is counted as being taxed already because it was not subtracted out of your taxable wages before tax was calculated.