Taxation of Disability Benefits
Disability Insurance for Doctors
- Taxation all depends on when the premium is paid and if it was paid before tax or after tax dollars.
- If it’s paid with pretax dollars, like group insurance plans, or social security plans, then you will pay taxes on that.
- Individual plans are usually paid with after tax dollars so the money comes to you, it will be taxed by the government, and you pay the premium. When you file a claim and are paid the income; you will not have to pay taxes on that.
Do you have further questions about the taxation of disability benefits? Contact our experienced Financial Advisors for dedicated navigation of disability insurance for physicians and dentists.