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Mom on Dealz » Ask an Accountant » Ask An Accountant: Is My Insurance Check Taxable?

Ask An Accountant: Is My Insurance Check Taxable?

It’s tax time! My “Ask An Accountant” series should help with many questions that may arise. Remember, if you have a tax question, email my husband who is an experienced accountant at cjwtaxpro@gmail.com.

Question:

I am getting a check from long term disability insurance. Is that taxable?

Answer:

If the insurance was paid for with “pre-tax” dollars then yes the insurance check would be taxable.  If the insurance was paid for the “after-tax” dollars then no it is not taxable.

Please keep in mind this post is for informational purposes only and answers given are very general. Do not rely on this column for definite tax answers as many things depend on individual circumstances. Please contact your personal accountant or financial advisor for your particular situation.

photo credit: austinpost.org

IRS Circular 230 Notice: Any U.S. tax advice in this written or electronic communication was not intended or written to be used, and it cannot be used by the taxpayer, for the purpose of avoiding any penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions

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