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Megan C
Megan C, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 16576
Experience:  Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level
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i am total and permanat disabled do i have to pay on my ltd

Customer Question

i am total and permanat disabled do i have to pay on my ltd benifits also if i take lump sum pension do i have to pay taxes
Submitted: 3 years ago.
Category: Tax
Expert:  Megan C replied 3 years ago.

Megan C :

Thank you for your question. My name is XXXXX XXXXX I will be happy to help you

Megan C :

How are you doing tonight?

Megan C :

Whether or not you pay tax on the LTD benefits depends on how the premiums for the policy were paid

Megan C :

If the policy was provided by an employer, it's taxable.

Megan C :

However, if you paid for the policy with after tax money, the benefits are not taxable.

Megan C :

Also, a lump sum pension benefit is also taxable.

Megan C :

Pension benefits are taxable the year that you receive the funds.

Megan C :

You can read about the taxation of pension benefits, HERE

Megan C :

Do you have any further questions?

Megan C :

If no further questions, please rate positive so that I may receive credit for assisting you today

Expert:  Megan C replied 3 years ago.

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