Can I claim the deduction?

Question

have been disabled for 3 years now for 18 months I received disability payments from a policy purchased at work. I am not getting SSD. Can we claim the extra deduction for disability at tax time?

Answer 1

There is no deduction for disability.

The disability payments that you are receiving may themselves be taxable. If you paid for the policy at work with pre-taxed dollars the benefits are fully taxable. Or if your employer paid for the coverage, the benefits are fully taxable. If you paid for it yourself with tax paid dollars, the benefits are not taxable. If part was paid with tax free dollars or by your employer and the rest was paid with tax paid dollars you must apportion the benefits in the same ratio as the policy was paid for.

Answer 2

Payments from a disability insurance policy are not taxable if you paid the premiums. They are taxable if your employer paid the premiums. There is no extra deduction for disability.