Whether or not you have to pay taxes on short-term disability benefits you get depends on who pays the insurance premiums -- you or your employer. ... filing her taxes. Disability benefits you receive from the Department of ... Military Disability Retirement pay could be taxable if reported on form 1099-R. Workers' compensation benefits are If you are repairing or replacing your personal vehicle, then you dont have to pay taxes on the insurance benefit, he notes. ... which could cause you to pay more in taxes than you ... past-due disability benefits to the year you should ... Nolo's Guide to Social Security Disability. About one-third of Social Security beneficiaries pay taxes on their benefits. Is short-term disability insurance income taxable or not? Disability benefits you receive from the Department of ... Is disability income taxable? Most people pay taxes when they: Buy stuff... Get paid for working... Have a business... Own property... Why are taxes necessary? I have where do put this amount my taxes? Income Taxation of Short-Term Disability Benefits. Taxes; Is Long-Term Disability Income Taxed? September 4, 2009. March 25, 2013 in Taxes. This form will tell you how much money you received from the SSA in Social Security Disability benefits. Whether disability insurance benefits are taxable depends on how you paid your premiums, says Sherman. If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and you didn't include the amount of the premium as taxable income to you, the premiums are considered paid by your employer, and the disability benefits The bad news is that, you may have to pay taxes on your disability benefits if your income exceeds a certain amount. If you Sometimes, your employer pays for an individual disability insurance policy on you. However, unlike health insurance premiums, you can't deduct premiums paid for individual disability income insurance as a medical expense. Find out more about the proceeds of a life insurance policy. Do beneficiaries pay taxes on the death benefits of an insurance policy? ... Generally, you must pay taxes on long-term disability payments from an 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. By: Eric Bank. You will either pay taxes on the benefit or on the premium, but never both. Generally, life insurance proceeds you receive as a beneficiary due to the death of the insured person, aren't includable in gross income and you don't have to report them. Gov disability faq_di_benefits. Disability Benefits: Changes to Canada Revenue Agency ... taxes. If you change the percentage of the premium you pay, then you must also . Because you pay the premiums with after-tax dollars, the benefits you receive are tax free. Federal income taxation of disability insurance benefits depends on what type of benefits you receive, whether the premiums were paid with pretax or after-tax dollars, and who paid the premiums (you or your employer).