Generally benefits received from disability insurance paid for by individuals with after-tax premium dollars, are received income tax free. If premiums were paid for and deducted by a Professional Corporation (PC) the benefits would be subject to FICA and Medicare withholding as well as income tax. For more information about taxability of disability payments, please contact our customer service area and/or consult with your legal or tax advisor.

Under current Canada Revenue Agency regulations, the disability benefits you receive will be considered non-taxable income if you pay your premiums with after-tax dollars. Essentially, this means that if you deduct your disability insurance premiums on your tax return, you’ll have to pay tax on your benefits if you become disabled. Normally, premiums for Office Overhead Expense Insurance may be deducted as a business expense.

Higher income beneficiaries (about the top 20% currently) pay taxes on their Social Security Benefits. If a married beneficiary has adjusted gross income (including 50% of Social Security benefits) exceeding $32,000 ($25,000 for single), then 50% of the income above this amount is subject to taxation. For income above $44,000 ($34,000 for single), 85% is subject to taxation.

You know you need life insurance to protect your family.

a result of the "Bailey" tax case, retirement benefits that are payable to members of the Retirement System who have maintained five or more years of retirement service credit as of August 12, 1989 are not subject to North Carolina income tax. If you did not have five years of maintained retirement service credit as of August 12, 1989, your retirement benefits are subject to North Carolina income tax, less a $4,000.00 annual exclusion when you file your North Carolina income tax return.

Medicare is a federally administered program that provides hospital and medical insurance protection to people aged 65 and older, disabled people under age 65 who receive cash benefits under Social Security or Railroad Retirement programs, and people of all ages with chronic kidney disease. Since 1973, aliens and some federal civil service employees and annuitants have been eligible to enroll by paying a monthly premium. Medicare consists of two parts: Part A and Part B.

Disability income insurance provides you with income should you become sick or injured and unable to work. It helps protect against family catastrophe by giving you an income to meet daily expenses. A variety of employer-paid and government sponsored programs, generally cost- free to the recipient, covering certain categories of workers.

If you paid for your policy with pretax dollars, then your benefits will be subject to taxation. If the benefits were paid with after tax dollars, then the benefits will be not be taxable. Most people receive their benefits as part of an employee benefits package and receive group rates. Whether paid in part of whole by the employer, these benefits will be taxable. Social Security disability benefits are taxable income also though it may seem somewhat senseless.

These are common terms for the Title II Social Security Disability program that provides monthly and Medicare benefits. Generally, you must have worked five out of the last ten years, unless you are under 31 years of age, or are blind.

No. You will continue to receive a disability benefit as long as your condition keeps you from working. Your case, however, will be reviewed periodically to see if there has been any improvement in your condition and whether you are still eligible for benefits. If you are still eligible when you reach 65, your disability benefits will be automatically converted to Social Security retirement benefits.

This depends on who paid the insurance premiums. If the insured paid the premiums with after-tax dollars, then the disability benefits will be received income tax-free. If an employer paid for part or all of the premiums then an equivalent portion of the benefits paid to the employee are usually taxable. Consult your accountant or tax adviser to make sure you fully understand this aspect of disability coverage.

No, the plan is designed to protect against the loss of your income in the event a disability occurs. If you're not employed, you have no income to replace.

If your answer was yes, what would happen if you are injured or have an illness and cannot work? Disability insurance would solve your problem. At many ages the odds are greater (about one in three) of you becoming disabled than of dying. Disability insurance is affordable! Disability insurance answers

Some insurance companies offer disability insurance policies that define disability in terms of income actually lost as a result of the disability rather than in terms of a particular occupation. Under these terms, if an insured becomes disabled benefits are paid to the extent that the insured suffers a loss of income over a predetermined threshold such as 20%.

If you are a resident of Oklahoma, your TRS retirement benefit is subject to state income tax. You may exclude the first $5,500 received in TRS benefits from your state adjusted gross income in tax year 2004. Senate bill 435 by the 2005 Legislature increases the amount TRS retirees can exclude from their income on figuring their Oklahoma state income taxes to $7,500 for tax year 2005 and to $10,000 for tax year 2006, and thereafter.

No. You do not have to report the increase in value and size of your trees nor do you have to pay any income tax until you actually receive the proceeds from their sale. This is another advantage over many other investments where you must pay taxes on the interest you earn each year, even if the interest is not paid out to you.

If the total of your taxable pensions, wages, interest, dividends, and other taxable income, plus any some of your benefits will be taxable.

We are required to deduct FICA tax from any disability payment for the first six months that an insured is disabled. The FICA deduction is based upon the percent of the premium that is paid by the employer. Disability benefits are also reportable income on W-2 forms.

Whether or not premiums are tax deductible depends on how the premium is paid. If benefits are paid for by a professional corporation, for example, the premiums can be tax deductible. Generally, premiums paid by individuals are not tax deductible while, in this circumstance, disability income benefits would be tax-free to the insured. For more information concerning tax deductibility, please contact our customer service department and/or your tax or legal advisor.