Do I have to pay taxes on disability payments?

I received payments from long-term disability insurance. I paid the premiums with after-tax income when I filed my tax return. Do I have to pay taxes on the disability payments?

When disability insurance premiums are paid with post-tax dollars, the benefits that flow from the policy are completely tax free. Benefits are generally taxable only if the insurance premiums are paid with pretax money. Generally, you must report as income only the amount you receive for your disability through an accident or health insurance plan paid for by your employer.

If you pay the entire cost of a health or accident insurance plan, do not include any amounts you receive for your disability as income on your tax return. If you pay the premiums of a health or accident insurance plan through a cafeteria plan, and the amount of the premium was not included as taxable income to you, the premiums are considered paid by your employer, and the disability benefits are fully taxable.