Exam term

Tax treatment of disability income

Benefits are tax-free when the insured paid the premium with after-tax dollars. When the employer pays and the premium is not included in the employee's income, benefits are taxable; when the cost is shared, the employer-funded portion is taxable.

Lessons that use this term

Disability income and accidental death and dismemberment policies New York
Group disability income: short-term and long-term disability compared with individual plans New York
Business uses of health insurance: key person, overhead expense, and disability buy-out New York