Can I Claim Disability Insurance On My Taxes?
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63333 POINTSview profilePeggy MaceMost of the U.S.If you are an individual purchasing an individual disability insurance policy, you generally cannot claim disability insurance on your taxes. It is not considered a medical expense. However, if you collect benefits due be becoming temporarily or permanently disabled, you do not have to pay taxes on those, because you paid for the policy with after tax money.Answered on September 7, 2013flag this answer
61667 POINTSview profileSteve SavantSyndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale ArizonaThere are rules on deductions or the business expensing of disability insurance premiums. If your business fits the IRS approved criteria, the company can deduct the premium. Keep in mind that deducting disability premiums also re-characterizes the benefits as taxable as ordinary income at the policy beneficiary's effective tax bracket rate. The good news is you can cover up to 80% of your compensation.Answered on September 7, 2013flag this answer
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