V
vtdubu
Guest
The question below from the Q&A board does not specify if this is true for my state of Vermont. Does that also apply for Federal,Fica,Etc.......? Does this hold true for Disability, SSI payments and Worker Comp?
Thank you
IS DISABILITY INCOME SUBJECT TO INCOME TAX?
The answer depends on who pays the premiums. If you pay for the disability insurance yourself, out-of-pocket, the benefits you receive are 100% tax free. If your employer pays the premium, you pay tax on the benefits you receive while disabled.
Social Security disability benefits may be taxed. If you file a federal income tax return as an individual with a combined income between $25,000 and $34,000 - 50% of your Social Security benefits are subject to income tax. If your combined income exceeds $34,000 - 85% of your Social Security benefits are subject to income tax.
Thank you
IS DISABILITY INCOME SUBJECT TO INCOME TAX?
The answer depends on who pays the premiums. If you pay for the disability insurance yourself, out-of-pocket, the benefits you receive are 100% tax free. If your employer pays the premium, you pay tax on the benefits you receive while disabled.
Social Security disability benefits may be taxed. If you file a federal income tax return as an individual with a combined income between $25,000 and $34,000 - 50% of your Social Security benefits are subject to income tax. If your combined income exceeds $34,000 - 85% of your Social Security benefits are subject to income tax.