Health Care

Health Care

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.

Posts: 1
Registered: ‎02-07-2018

Is long term disability taxable to me now that I'm paying the total premium?

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?

Council Member
Posts: 548
Registered: ‎04-06-2016

Re: Is long term disability taxable to me now that I'm paying the total premium?

According to the info at the IRS website: , 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 "

  • If you pay the entire cost of a health or accident insurance plan, don't include any amounts you receive for your disability as income on your tax return."

Which would mean that if you're paying 100% of the premiums, the benefits you received are NOT taxable.