Are benefits from short-term and long-term disability payments taxable income?

Your disability income benefits are taxable, but you may be able to deduct the cost of premiums.

Please consult with a tax professional for tax advice for your specific situation; however, in general, whether or not you will be required to pay taxes on disability income depends on:

  • Your total income; if you file a joint return with a spouse, your total combined income; and
  • Whether you, or your employer took a tax deduction for the payment of disability insurance premiums.

Whether or not you can deduct the cost of premiums for insurance depends on several things. If your employer paid the premiums on your behalf, the employer may deduct the cost of premiums offered as an employee benefit. If you paid the premiums yourself, you may be able to deduct some or all of the cost of premiums for either short-term or long-term disability insurance coverage.


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Los Angeles Attorneys For Disability Claims Insurance Bad Faith Under ERISA Law

The attorneys at Donahue & Horrow, LLP, are experienced at pursuing denied disability claims in California and they offer their services for disability claims on a contingency basis. You will not have to pay our attorneys to pursue your disability claim unless they obtain compensation for you. For many of our clients, the contingency fee arrangement is a relief because of the dire financial circumstances they may already be facing.

Unfortunately, Most group disability insurance policies obtained through employment are governed by the Employees Retirement Income Security Act of 1974 (ERISA).

ERISA is a federal statute that provides strict deadlines and guidelines for claimants and insurance companies in processing a claim, the submission of an appeal and ultimately the determination of eligibility for benefits under a disability insurance policy.

Even if state laws touch on employee benefit plans, ERISA preempts these laws and provides the exclusive remedy to obtain relief from insurance providers for employee disability coverage. Unless your employer is a church or a government agency, the insurance plan offered through your employment is probably governed by ERISA.

Contact our law office today to schedule a free initial consultation. We handle disability claims on a contingency basis so there is no fee unless we take your case and recover for you.