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Are Disability insurance payments taxable?

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Answer:

Depends. If you paid the premiums with after-tax dollars, then the payouts are tax-free. However, if your employer paid them and did not dedcut them from your pay, then your payouts are taxable. In addtion to that, if you split the cost of the premiums with your employer, and your half was paid with after-tax dollars, than the same percentage your employer paid is the percentage of payout that becomes taxable.

First answer by ID1129200970. Last edit by ID1129200970. Question popularity: 3 [recommend question].

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