by Guest » Tue Nov 05, 2013 01:23 pm
My employer offers LTD as part of standard benefit and they also choose to either make it taxable or not. Are the premiums added directly to my taxable benefits? Or, would I be required to pay the taxes if I receive the benefits on true disability grounds?
I believe taxing is a good deal since the premiums are not that much high and the benefits are so good that it could easily replace my current income.
Unfortunately, a no-brainer to me. So any commentary that would elaborate the pros and cons would be very helpful and appreciable.
I believe taxing is a good deal since the premiums are not that much high and the benefits are so good that it could easily replace my current income.
Unfortunately, a no-brainer to me. So any commentary that would elaborate the pros and cons would be very helpful and appreciable.
Posted: Fri Nov 08, 2013 12:03 am Post Subject:
By paying income tax on the value of premiums paid by your employer (through "imputed income" added to your W-2 at year end), you will receive the income benefit tax free in the event of a qualifying disability. A small price to pay in exchange for the money you could receive for a lifetime.
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