1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    Very generally speaking, if you pay for your disability insurance with your own, after-tax money, the benefits you receive from the policy are not taxable. If your employer paid the premium, or you paid for the disability insurance with income before taxes were taken out, you need to pay taxes on the benefit when used. 

    There are many different scenarios to this question, so consult with your tax attorney for your particular situation.
    Answered on July 21, 2013
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