When is disability income tax-free?
When can you, your business, or your corporation deduct disability insurance premiums?
Find the answers in this article.
When Disability Income Is Tax-Free
You collect personal disability income tax-free from your disability insurance policy when you paid the premiums personally.
There’s no limit on the tax-free income, providing you paid the premiums personally.
On the other hand, your personal disability income is taxable if you did not pay the disability premiums personally.
Example. Your personally owned C corporation, your employer, pays the disability insurance premiums on a policy under which you are the ... Log in to view full article.