New answer on: Is Money From Disability Insurance Taxable?

By: Robert J Russell - Finalist for Broker of the Year 2015

Robert J Russell - Finalist for Broker of the Year 2015 — Sun, 06 Mar 2016 16:07:47 +0000

This is one of the most popular questions that I get asked so here is my answer: If you paid all of the premiums with after-tax income, or if your employer made the contributions and included the amounts in your gross income, any disability insurance benefits paid to you are exempt from tax.

By: David Racich

David Racich — Mon, 03 Jun 2013 01:42:15 +0000

Disability insurance benefit proceeds can have two outcomes when inserting taxation or the lack thereof into the planning equation. You can insure up to 60% of your compensation tax free with nondeductible premiums or insure up to 80% of your compensation taxable with deductible premiums through a business benefit arrangement.