Taxes on STD

[timchi29]

What is the name of your state? Illinois

My wife has paid her STD premium on a post tax basis and received the bebefit with no taxes taken out. I got a W-2 from the insurance company with Wages in Box 1 and Box 2 has amount of Federal Taxes withdrawn, which was $0. This will increase of AGI, but taxes paid will be the same, meaning I will owe more in taxes. I thought if you paid the premium in a post tax basis, it is tax free?

Can anyone help?

ThanksWhat is the name of your state?

 

[Beth3]

If your wife paid the premiums, it IS tax free - at least at the federal level. You'll want to check what IL tax reg's require but in most instances, State tax reg's mirror federal. I'd also suggest you contact your wife's employer and/or the STD insurance carrier and ask why they're reporting that income as wages.

Perhaps the employer has not fully explained to the carrier that the premiums are employEE paid and/or the carrier simply screwed up.