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In general, disability benefits are not taxable. However, if your have combined income from disability and other sources or income or if you are married and your spouse has other sources of income and your combined income exceeds $35,000, you do have to pay state taxes. Accordingly, you should consult with a tax preparer or CPA to determine if you need to pay. Thanks for understanding. I always hate to give an answer that you may not want to hear. But I hope you appreciate that I must respond based on the law. Thanks in advance for rating me.