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02-08-2018 12:00 PM
While working I purchased Short and Long Term Disability Insurance through my employer. We both paid a portion of the premium and my portion was with pre-tax dollars. I became injured 2 years ago, and I know that when I started to receive these benefits, they were considered 100% taxable due to the fact that I shared the cost with my employer and my portion was with pre-tax dollars .
My employment was then terminated due to my disability and for the last 1-1/2 yrs I purchased health insurance through Cobra. I also continued to pay my long-term disability premium....and I'm still receiving long term disability benefits. My question is.... Since I paid the whole long term disability premium out of my pocket last year, are the LT Disability benefits I received still 100% taxable to me?
03-06-2018 07:42 PM
According to the info at the IRS website: https://www.irs.gov/faqs/interest-dividends-other-types-of-income/life-insurance-disability-insuranc... , it appears that your assumption for your past disability when your employer paid and you paid your part of the premiums pretax being taxable is correct. However, this paragraph says "
Which would mean that if you're paying 100% of the premiums, the benefits you received are NOT taxable.