[Jenkay]

I'm currently receiving long term disability through insurance from my previous employer and have filed for SSD.

My LTD payments are not taxed as I paid for the premiums with after tax dollars.

I heard today that when I file my taxes next year I'll need to pay tax on any payments I receive from disability payment if our family makes over 32,000.

For those of you on private or social security disability can you tell me what you have experienced at tax time?

Thanks, I just want to be prepared for tax time next year as this is my first time on disability.

:blush:

 

[lazylegs]

Hi Jen,

I never had private disability. On the social security disability I had to pay on 85% of it. The tax forms provide a sheet to calculate what portion you will have to pay on. You can go to the IRS website to see a sample of how it was calculated for 2007.

Take care,
Lazylegs

 

[Tom]

Some people who get Social Security will have to pay taxes on their benefits. Less than one-third of our current beneficiaries pay taxes on their benefits. You will have to pay federal taxes on your benefits if you file a federal tax return as an "individual" and your total income is more than $25,000. If you file a joint return, you will have to pay taxes if you and your spouse have a total income that is more than $32,000.

http://ssa-custhelp.ssa.gov/cgi-bin...3RleHQ9YmFja3BheSB0YXhlcw**&p_li=&p_topview=1

I get private disability and have to pay taxes on it. Sad isn't it?

 

[Jirel]

Tom, is this saying that if you have SSDI and you also have private insurance and the two together total over $25,000 a year, then even if the private insurance came out of after tax dollars, you must pay taxes on the SSDI? If you don't have the answer because that's not your situation, I understand. I just thought I would take the chance that you might know.

Thank you in advance.

 

[Jenkay]

Wow, thanks for the information, I guess I have some financial planning to do!

Jen