Is Disability Insurance Pre Taxed?

  1. 1575 POINTS
    Christopher Lawrence
    Insurance Broker | Financial Consultant, Lawrence Insurance Consulting, Southern New Jersey
    It depends on how the policy is structured. If an individual obtains disability insurance through their employer and the premiums are payed either by the employer or through a salary redirection agreement then they would be payed with pre-tax dollars and therefore any pay-out would be taxed. If one pays with funds that are included in their gross income and have been subjected to FICA and FUTA taxes then the pay-out from the DI would not be taxed.
    Answered on June 26, 2013
    flag this answer
    2. Did you find these answers helpful?
    Yes
    No
    Go!

Add Your Answer To This Question

You must be logged in to add your answer.


<< Previous Question
Questions Home
Next Question >>