Taxation of Disability insurance benefits, whether Long-Term or Short-Term is dependent on who is paying the premiums.
-If the Short-Term disability insurance is provided by your employer, then the benefits will be taxable at time of claim.
If you pay your own premiums, then you need to check as to whether you are paying with pre-tax dollars or post-tax dollars.
-If you are paying pre-tax then the benefits will be taxable at time of claim.
-If you are paying with post-tax dollars then the benefits are not taxable at time of claim.
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