disability from work tax exempt?

Question

my husband just got news that his company is giving him his disabilty is this tax exempt?? and if he gets social sercurity is that tax exempt??

Answer 1

Taxable Social Security Disability Benefits
Are there federal income taxes on your Social Security Benefits. Some people actually are taxed on their disability benefits. It seems unusual, but occurs often that you have to pay taxes on disability benefits. If your total income is high, you will probably have to pay taxes.
How Much of Your Disability Benefits are Taxable?
Fifty percent of your disability benefits may be taxed if your income (total) is more than twenty five thousand dollars a year and less than 34,000. If you are married, your combined income being between 33,000 and 44,000 causes 50% of your benefits to be taxable.
85% of disability benefits are taxable for individuals with income over $34 k, or over $44 k for married couples.
Yearly, the Social Security Administration will issue you a Benefit Statement, Form SSA-1099, which shows the amount of benefits you received. This statement is used to calculate the amount of benefits that are taxable
publication 915 will help you at www.irs.gov or you can contact the irs at 1-800-829-1040

Answer 2

I agree that this is not a simple yes or no answer. In general if the disability payment is to replace his wages, then it is taxable otherwise no. But there are exceptions. Social security can be taxable depending on your other income. It is best that you consult a tax professional.

Best wishes.

Answer 3

There's not a simple yes or no answer to the question "are disability benefits taxable" - it depends on a number of things. You'd be wise to see a CPA to determine this.

If you follow the advice you get here on Yahoo Answers, you could be setting yourself up for trouble.

Answer 4

yes