2007-11-03 05:08:15 · 3 answers · asked by donn h 1 in Business & Finance ➔ Taxes ➔ United States
I'ts pretty simple, really. If you pay the premium with pre-tax dollars, any benefits will be fully taxable to you. If you pay the premiums with after-tax dollars, the benefits will be tax free to you.
This assumes that you are paying 100% of the premiums yourself. If your employer is paying a portion, the portion of any benefits attributable to the premiums that your employer paid is always taxable.
2007-11-03 07:23:27 · answer #1 · answered by Bostonian In MO 7 · 2⤊ 0⤋
It sounds like you are going to get long term disability (LTD), and you must decide if taxes are to withdrawn from the payments or no taxes are withdrawn from the payments.
My opinion is this: LTD is still considered income as long as you haven't reached the mandatory retirement age of your company. After retirement age is met, then LTD is considered retirement distribution. At any rate you are still liable for taxes, but you may be able to qualify for the "credit for elderly or disabled." The total tax for which you are liable depends on other income and/or credits as well.
2007-11-03 05:29:50 · answer #2 · answered by Country Boy 5 · 1⤊ 2⤋
It is impossible to decipher what you are attempting to ask because you cannot spell.
2007-11-03 05:19:19 · answer #3 · answered by Anonymous · 0⤊ 1⤋