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27 October, 20:24

P is self-employed and owns an individual disability income policy. he becomes totally disabled on june 1 and receives $2,000 a month for the next 10 months. how much of this income is subject to federal income tax?

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  1. 27 October, 22:04
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    The benefits received from an individual disability insurance policy is not subject to federal income tax.

    From what I've read in various online articles, individual disability income insurance benefits are tax free because you have already paid for tax. The premiums you pay are from after-tax dollars. This means that taxes required on insurance disability benefits have already been paid prior to the benefits given.
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Home » Business » P is self-employed and owns an individual disability income policy. he becomes totally disabled on june 1 and receives $2,000 a month for the next 10 months. how much of this income is subject to federal income tax?
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