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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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I have been on term disability months, on the check stub

Customer Question

I have been on Long term disability for 18 months, on the check stub there is no mention of tax withholding and I just received a w2 from my former employer, I am confused, Please help me understand this.
Submitted: 11 months ago.
Category: Tax
Expert:  Lev replied 11 months ago.

We need to verify if these long term disability benefits are paid by the insurance company or by your employer.

Expert:  Lev replied 11 months ago.

You must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer:
•If both you and your employer have paid the premiums for the plan, only the amount you receive for your disability that is due to your employer’s payments is reported as income.
•If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive for your disability as income on your tax return.
•If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and you did not include the amount of the premium as taxable income to you, the premiums are considered paid by your employer, and the disability benefits are fully taxable.
•If the amounts are taxable, you can submit a Form W-4S, Request for Federal Income Tax Withholding From Sick Pay, to the insurance company, or make estimated tax payments by filing Form 1040-ES, Estimated Tax for Individuals.

Amounts you receive from your employer while you are sick or injured are part of your salary or wages.

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