Is Disability Insurance Earned Income?

1. 

   61667 POINTS

   view profile
   Steve Savant

   Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona

   Disability can be purchased in basically two ways: non deductible and deductible premiums. The conventional disability insurance policy is purchase with after tax dollars, so the benefits generated at the time of the claim are tax free. Tax deductible disability premiums need to qualify under the terms of the IRS, but if they qualify for tax deductible status, then they're benefits at claim are taxed as ordinary income.

   Answered on August 14, 2013

   flag this answer
Did you find these answers helpful?
Yes
No
Go!

Add Your Answer To This Question

You must be logged in to add your answer.