- quote -

Since you apparently paid the premiums, the insurance
company's payments are not taxable income.

- quote -

Workers compensation is not taxable. However, if you
receive both SSD and workers compensation, your SSD payments
normally are offset by a portion of the workers compensation
you are receiving. This offset is shown on your SSA Form
1099 and the offset amount is treated as SSD received.

The same tax rules govern the taxability of SSD as apply to
social security benefits paid to retirement eligible
beneficiaries. Up to 85% of your SSD could be taxable
depending on the amount of other income, including your
spouse's income if you are married and file a joint return.
To determine if any of your SSD is taxable, see the
worksheet on page 15 of IRS Publication 915.

http://www.irs.gov/pub/irs-pdf/p915.pdf

Frederick Lorca

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<mhstice[at]earthlink.net> wrote:

- quote -

Probably not, assuming that you paid the premium for the
disability insurance on the loan from after-tax funds. See
IRS Publication 525.

- quote -

No. Workers' Comp is, by statute, exempt from Federal tax.
Also Pub 525.

How much, if any, of your SSDI is taxable depends on your
other income. See line 20 of Form 1040.

--
Phil Marti
Clarksburg, MD

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I live in Florida and recieve Social Security Disability as
well as Workman's Compensation from my former employer.
Also while I was employed I financed a new car through the
companies credit union........ while doing the papers I
checked that I wanted the disability insurance. So I am now
totally disabled and the insurance company pays my car
payments. Must I claim this as income?

Also, am I right in thinking I have to pay taxes on my
Social Security Disability AND my workman's compensation?

Thank you....... Marcia

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