Thanks for asking your question! I'm sorry to hear about your tax issue and I'm going to try my best to help you understand or resolve it.
Who pays the premium on the long term disability plan - is it your wife, or your wife's employer?
My wife's employer
Okay, then the entire amount becomes taxable. You will not have to file your taxes right away, although the insurance company should withhold a portion of the payout
You will file your tax return in April as typically expected
Please take a moment to rate my response as "excellent" so that I may receive credit for assisting you today