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NEW In-House Counsel | Insurance | Intellectual Property | Immigration | Natural Resources | Real Estate | Tax

Adding up long term disability tax implications

Thursday, December 15, 2016 @ 7:00 PM | By Paul Cahill

Lawyers handling long-term disability (LTD) claims know that certain policies provide benefits that are taxable while most others are non-taxable. Generally speaking, if the employee pays the premium for the policy (with their own after-tax dollars), then the benefit will be non-taxable. If the employer pays the premium, then the benefit will be taxable.

If a taxable LTD benefit is denied, and the matter goes into litigation, all arrears paid will be taxable and the insurance company will issue the appropriate tax forms, as well as...