I was on short term disability from November through the end of the year. The plan is paid by my employer so my understanding is that I must claim this as income. I have not received a W2 or anything from the disability company and this amount is not on my employer W2.======>>>In general, your ER reports taxable STD benefits on your W2 in box 1 as income and you need to report it on1040 line 7.or if it is nontaxable then STD company reports it on W2 box 12 with code J.I n my opinion, for more accurate info, you need to contact your ER/STD company.
it depends;
determining the tax implications depends on the type of benefit received and, who pays the premiums; When you obtain short-term disability insurance coverage at work, whether it's because the state you live in requires your employer to provide it or it's voluntarily offered as an employee benefit, the benefits are fully taxable if your employer pays 100 % of the premiums. This can occur either through payroll deductions from your net wages meaning the premiums are included as income on your W-2 or by taking out a private insurance policy on your own, In the event your employer deducts the premiums on a pre-tax basis, any short-term disability benefits you collect are then taxable.
I have been using Tax Act to file and I cannot find where to put this in as income? When I put it in "other" which will report it on form 1040 line 21 I run the alerts and is states that it will trigger an IRS review because it is over $400 dollars (they paid me $2500 for that month I was out).=====>>>>>>>>>>>>>OK in general, ST disability benefits can be partially taxable aslongas you and your employer both contribute to the insurance premium payments. for example, you obtain coverage that costs $10 per month, of which you pay $4 and your employer pays $6. This provides you with $1k over the course of four weeks while you undergo and recover from surgery. In this scenario, 40% of the benefits that relate to your contribution towards the premium payments but not your employer's are tax-free. In other words, $400 of your ST disability benefit isn't taxable, while the remaining $600, or 60%, must be reported on your 1040; If your employer pays half the cost of premiums and does not deduct these payments from your pay, then you most likely must report half the payments received as income.ST disability benefits paid under a workers' compensation law for sicknesses and injuries suffered at work, or through a “no-fault” auto insurance policy as a result of injuries that keep you from working, aren't taxable. |