This is from an insurance policy that i took out as an individual and am now receiving incoime from it--it is not group insurance! Also r the premiums i pay deductible similar to my medical insurance premiums?
2006-07-13 03:16:08 · 5 answers · asked by Anonymous in Business & Finance ➔ Insurance
Yes on both counts.
2006-07-13 03:28:52 · answer #1 · answered by Badkitty 7 · 0⤊ 0⤋
The income is a tax free benefit as long as you paid for it out of pocket. If your employer is paying for it, then the benefit becomes taxable. You, as an individual cannot deduct the premium payments unless this was a qualified plan. Individual plans in most cases are not set up this way.
2006-07-13 10:27:21 · answer #2 · answered by tigertiggerii 3 · 0⤊ 0⤋
It depends. If you paid the premium with after tax dollars, then the benefits are not taxable; if you (or your employer) paid with pre-tax dollars, then they usually are.
As far as I know, the premiums for disability insurance are NOT tax deductible - but check with a tax specialist first.
2006-07-14 04:12:29 · answer #3 · answered by Anonymous 7 · 0⤊ 0⤋
I believe it depends on whether you deducted the disability insurance premiums. You really need to speak with a tax pro. Doesn't have to be too expensive.
2006-07-13 03:20:54 · answer #4 · answered by Oh Boy! 5 · 0⤊ 0⤋
Talk to a tax pro. If you paid your premiums with pretax dollars then the benefits will likely be taxed. If you bought and paid for the policy on your own, first congratulations for your foresight, then also you benefits should be tax free.
2006-07-13 03:35:08 · answer #5 · answered by insuranceguytx 5 · 0⤊ 0⤋