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How do health care reform and taxes connect? The Affordable Care Act is single largest change to the tax code in two decades. Find help navigating the complexities of the new health care legislation, Medicare, Medicaid and other medical deductions.
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?