Hello and thank you for using Just Answer,
Insurance amounts paid to the beneficiary (like life insurance) are generally not taxable to the receiver.
Any interest that may be earned while the money is waiting to be distributed would be taxable but the insurance company would advise if any interest is included.
Disability is generally not taxable but it depends on who is paying the disability.
If it is workman's compensation then it is not taxable.
If the injured person is being paid by an insurance company and that same injured person made all the premium payments
then it is not taxable
If the person's employer paid for the disability policy then the payments are taxable.
So perhaps you can advise what exactly the payments are for
This is not workmans comp. issue. Also what about life insurance payments ??
Life insurance payments answered in my first post, those are not taxable to the receiver when someone dies and the policy is paid.
It is not workman's comp, what is it?
Disability can come from an insurance policy and SSA
California dis insurance
Disability Insurance (DI) benefits are not taxable except when considered to be a substitute for unemployment compensation when paid to an individual who is ineligible for unemployment insurance (UI) benefits solely because of the disability.
If that were the case the person would get a 1099G