Does Disability Insurance Count As Earned Income?

1. 

   10968 POINTS

   view profile
   Tim Wilhoit

   Owner, Your Friend 4 Life, Brentwood TN

   Disability insurance can count as taxable income or it can be tax free. The simple way to determine if disability income benefits are going to be taxed or not is by determining who pays the premiums? If you have your disability through an employer who pays your premiums and deducts them from the company taxes, then yes your disability benefits are taxed as income. If you purchase disability insurance and you pay the premiums which are not tax deductible then your disability benefits are tax free. Always consult a professional tax advisor as well when it comes to your taxes.

   Answered on August 8, 2014

   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.