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I am receiving a payment from my prior employment disability

Customer Question
please JA: The Accountant will know...
please
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I am receiving a payment from my prior employment disability insurance. Will I be taxed for that?
JA: Is there anything else important you think the Accountant should know?
Customer: The money is a large lump amount for previous months. It will also have payments for the next few months.
Submitted: 28 days ago.Category: Finance
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Answered in 21 minutes by:
11/16/2017
Financial Professional: bkb1956, Finance Enthusiast replied 28 days ago
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 4,190
Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.
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Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Whether you are required to pay taxes on your long term disability benefits is based on WHO paid for the insurance premium. If you paid for the premium with “after tax dollars” then the long term disability benefits are generally tax-free. If your employer paid for the insurance premium or you paid for it with “pre-tax dollars” then the benefit is generally taxable at regular income tax rates.

Please let me know if I can assist you further.

Thank you and best regards,

Barb

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bkb1956
bkb1956
bkb1956, Finance Enthusiast
Category: Finance
Satisfied Customers: 4,190
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Experience: IRS Enrolled Agent, 20+ years of experience in tax preparation with associated finance experience.

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