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Can i use my Short term disability benefits for income tax?

Saturday Jan 10, 2009

I have been out on disability for almost 6 months, so i worked half the year. i had taxes taken out of my disability because i was nervous that i would owe at the end of the year. i have 3 children that i claim but i wasn't really sure if i can use the disability towards the refund. can anyone help me?
I have been out on disability for almost 6 months, so i worked half the year. i had taxes taken out of my disability because i was nervous that i would owe at the end of the year. i have 3 children that i claim but i wasn't really sure if i can use the disability towards the refund. it was State disability. i became Ill with lyme disease. can anyone help?

What kind of disability benefits? Your disability benefits should not be taxable unless it is sick leave from your job.

3 Comments »

wartz:

What kind of disability benefits? Your disability benefits should not be taxable unless it is sick leave from your job.
References :

January 10th, 2009 | 7:50 pm
v b:

Was this social security disability or a one from private insurance?

As far as your taxes go, you could have roughly $20,000 of income before you would owe tax and even then children under 17 would still give you a child tax credit.

What disability income tends not to create (unless reported to you on a W-2) is EIC or additional child tax credit.
References :

January 10th, 2009 | 8:34 pm
chatsplas:

Depends on the source of disability income whether or not it is taxable. If it is from government, not taxxable. If from insurance program at employer, insurance you pay for, due to lawsuit, etc, it may be reported to you on W-2 and be taxable. Depends on program, and they should have been able to tell you that.
References :
tax pro

January 10th, 2009 | 8:50 pm
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