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Disability premium tax deductiblity

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  • Disability premium tax deductiblity

    Broadly speaking, when I pay my disability insurance premiums, if I'm subsequently disabled, my insurance payments will be tax free. If my employer reimburses me for my disability premium however, and I'm subsequently disabled, will my insurance payments be tax free? I don't think so, but what does the law say? Thanks for your input.

  • #2




    Broadly speaking, when I pay my disability insurance premiums, if I’m subsequently disabled, my insurance payments will be tax free. If my employer reimburses me for my disability premium however, and I’m subsequently disabled, will my insurance payments be tax free? I don’t think so, but what does the law say? Thanks for your input.
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    If your employer reimburses you for your disability premiums, deducts the reimbursement as a business expense, and does not include the reimbursement in your taxable compensation, any disability income you receive from the policy will be taxable to you.
    Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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    • #3
      What if the reimbursement is included in my taxable compensation?

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      • #4




        What if the reimbursement is included in my taxable compensation?
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        Then any disability payments would not be taxable income to you. You either pay up front or at the end.
        Working to protect good doctors from bad advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087

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