Have a Tax Question? Ask a Tax Expert
I don't have sufficient information about the disability payment. What exactly was the $26,000 paid to cover (e.g., on-the-job injury, private disability insurance coverage, etc.)?
If your spouse paid the premiums for the insurance, herself, then the payments are not taxable at all. If your spouse's employer paid the premiums, then the payments are taxable as ordinary income (not wages, but taxable at your effective tax rate, which based upon your stated earnings is probably about 15% federal, 3.07% Pennsylvania).
I hope I've answered your question. Please let me know if you require further clarification. And, please provide a positive feedback rating for my answer (click 3, 4 or 5 stars) -- otherwise, I receive nothing for my efforts in your behalf.
Thanks again for using Justanswer!
I see that you have reviewed my answer, but that you have not provided a rating. Do you need any further clarification concerning my answer, or is everything satisfactory?
If you need further clarification, concerning this matter, please feel free to ask. If not, I would greatly appreciate a positive feedback rating for my answer (click 3, 4 or 5 stars) – otherwise, I receive nothing for my efforts in your behalf.Thanks again for using Justanswer!