{"id":352931,"date":"2016-04-04T10:46:35","date_gmt":"2016-04-04T15:46:35","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/accident-injury-law\/disability-insurance-and-taxes.html"},"modified":"2024-01-02T12:51:33","modified_gmt":"2024-01-02T17:51:33","slug":"disability-insurance-and-taxes","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/accident-injury-law\/disability-insurance-and-taxes.html","title":{"rendered":"Disability Insurance and Taxes"},"content":{"rendered":"\n
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Disability Insurance and Taxes<\/h1>\n\n
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\n By Ty McDuffey, J.D.<\/a> | Legally reviewed by Katrina Wilson, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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Key Takeaways<\/h2>\n

You may need to pay taxes on the disability insurance benefit payouts you receive. Your tax liability depends on the insurance plan you have.<\/p>\n\n <\/div>\n <\/div>\n<\/div>\n\n\n

Generally, all income you get is taxable income unless it’s expressly exempted. Exemptions include workers’ compensation payments and personal injury settlements received through litigation.<\/p>\n

But income received from disability insurance generally isn’t exempt. Insurance companies provide these benefits, and they may or may not be subject to income tax.<\/p>\n

Planning your finances with a disability can be complicated. Whether you need help with tax implications or filing a claim, a disability law attorney<\/a> can help ease the process for you.<\/p>\n

Is Disability Income Taxable?<\/h2>\n

In some cases, yes. Income from disability insurance benefits may be subject to taxes, but there are exceptions.<\/p>\n

Whether disability insurance benefits are taxable depends on:<\/p>\n