If I pay my own long term insurance, out of my check each week at my work, I read that I do not have to pay taxes on that income, that I would only owe taxes if my work paid for all or part of it is that correct? I just started a long term policy, and want to make sure I don't owe taxes on this money come February.
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1Hi, could you provide details of your country by adding a tag to your question?– GS - Apologise to Monica ♦Commented Oct 6, 2014 at 18:22
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Related: Should I elect to have my long-term disability insurance be taxable?– Nate EldredgeCommented Oct 7, 2014 at 15:17
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1 Answer
If you are the only contributor to the premiums, you will not owe income taxes on the benefits. Only the portion of the benefits you receive which were paid by your employer are taxable.
Source: IRS 'Life Insurance & Disability Insurance Proceeds'
Question: I am receiving long-term disability. Is it considered taxable?
If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive for your disability as income on your tax return
EDIT: In regards to @NateEldredge's comment: If you are inquiring about the premiums, then yes, you have to pay income tax on the portion of income that pays the premiums (it's a post-tax expense and is not tax-deductible)
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I think your answer is about whether the disability benefits are taxable, but the asker wants to know whether the premiums are taxable. Commented Oct 6, 2014 at 19:13
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@NateEldredge You are possibly correct. The question, as framed by OP, inquires about the tax obligation regarding self vs employer contributions to premiums, which is only relevant in the event of a benefit payout.– NoahCommented Oct 6, 2014 at 19:18