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Merlo, Accountant
Category: Tax
Satisfied Customers: 9783
Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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Do I have to claim partial disability checks that I receive

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Do I have to claim partial disability checks that I receive because of missing work with a short term injury?
Hello bandman,

When you receive short or long term disabiity benefits, the benefits may or may not be taxable depending on how the premiums for the disability insurance coverage were paid.

If the premiums for this coverage were paid entirely by your employer, then this is taxable income to you.

If you paid for the premiums on your own, then as long as the premiums were paid with "after tax" dollars, this would not be taxable income. In other words, if the employer deducted the premiums from your paycheck, and included those premiums as part of your taxable pay, then the benefits themselves would not be taxable.

If you paid for the premiums out of your check but the amount was allowed as a pre tax deduction from your pay, then the benefits you receive are taxable.

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Thank you bandman.

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