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Taxation of Long-Term Disability Benefits. In general, if the premiums for your LTD policy were paid for with before-tax dollars (as is almost always the case with an employer-provided group plan), your LTD benefits are taxed as ordinary income to you.
Are Social Security Disability Benefits Taxable? If I am awarded Social Security disability benefits, will I have to pay taxes on the money I get? What about on the backpay I should receive for the monthly benefits I miss while my application is being processed? Submitted by Dunyelle.Rosen on Thu, 05/05/2011 - 12:51.