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If I pay my own long term insurance, out of my check each week at my work, I read that I do not have to pay taxes on that income, that I would only owe taxes if my work paid for all or part of it is that correct? I just started a long term policy, and want to make sure I don't owe taxes on this money come February.

Noah
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rick caivano
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1 Answers1

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If you are the only contributor to the premiums, you will not owe income taxes on the benefits. Only the portion of the benefits you receive which were paid by your employer are taxable.

Source: IRS 'Life Insurance & Disability Insurance Proceeds'

Question: I am receiving long-term disability. Is it considered taxable?

If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive for your disability as income on your tax return

EDIT: In regards to @NateEldredge's comment: If you are inquiring about the premiums, then yes, you have to pay income tax on the portion of income that pays the premiums (it's a post-tax expense and is not tax-deductible)

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Noah
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