If you and your employer share the cost of a disability plan, you are only liable for taxes on the amount received due to payments made by your employer. So, if you pay the entire cost of a sickness or injury plan with after-tax money, you do not need to report any payments you receive under the plan as income.
Is disability income taxable by IRS?
You must report as income any amount you receive for your disability through an accident or health insurance plan paid for by your employer: If both you and your employer have paid the premiums for the plan, only the amount you receive for your disability that’s due to your employer’s payments is reported as income.
Is Unum short-term disability taxable?
What tax rules apply? Disability insurance provides income protection for individuals who cannot work, or cannot work full time, due to injury or sickness. Unum provides a variety of disability products with a broad range of coverage, cost and premium funding options. … All income is taxable.