Are you taxed on disability and retirement checks?

In: Taxes and Tax Preparation

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If either your employer bought the disability policy, or you purchased it with PRE-tax money (thru payroll deduction perhaps), then I believe disability benefits are taxable at ordinary income tax rates. If it was purchased with after tax money, usually not taxable. A good rule of thumb is: If YOU haven't paid taxes on the premiums, you're going to pay taxes on the benefits.

If you mean "pension payments" when you say "retirement checks," then yes. It is taxed like ordinary income.

First answer by ID1184699749. Last edit by Leahregularuser. Contributor trust: 4 [recommend contributor]. Question popularity: 74 [recommend question]

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