Long Term Disability Benefits

[zeeman]

Can anyone explain to me if Long Term Disability benefits are taxable. I've read somewhere that if the premuims of the policiy were paid by the employee with after tax dollars, than any long term disability benefits received are exempts from income tax. Can anyone elaborate?

 

[ConansHammer]

In Canada ...... premiums that you pay yourself with after tax dollars creates a disablility income policy that has tax free benefits.

Policies that are paid using pre tax dollars... aka salary continutation plans have a taxable disability benefit.

It maybe similar in the USA.