I have a question regarding my ltd premiums paid and whether my LTD payments will be tax free or taxed.
My application was approved recently and im still waiting for the formal letter and breakdown of my benefits. I noticed on ny LTD application that my employers statement has Yes checked off for the question of if the benefits are taxable. I have been paying roughly $1000 per year just for the LTD portion of my group benefits. Wouldn’t that mean it should be tax free?
Thank you!
If you are paying the full cost with your after tax dollars then it should be tax free. It’s possible that you only pay part of the premiums. Either way check the details with HR and also check your employee benefits booklet for the details.
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Thank you! My HR takes days to respond but I will ask him. How would I know if it’s taken from pre tax dollars? It’s in the list of deductions.
Thanks again!
Start with your benefits booklet, see if it says anything. Then ask HR if you are paying the premiums, and if so, shouldn’t it be a non-taxable benefit.
Thank you! I didn’t find anything in my benefits booklet. I have reached out to my HR and now I’ll wait.
It was listed as a line item on the pay advice slip… it was a big deal that few people understood when there was a vote to switch from fully paid by employees vs co-pay…
Insurance company lobbyists… meant they could claw back CPP-D…
Plus, tax to government…
So, there is that…
Hello itsme!
I agree with Caro. According to the Income Tax Act if the employer pays any portion of the disability insurance premium, then your disability benefits are considered taxable income.
Hope this helps!
Thank you! Found out that it will be tax free 
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Excellent! Hoping for your speedy recovery!
Thank you so much! Hope you had a great Thanksgiving