Sections in this Topic. 1  Overview. 2  Consumer and Other Compliance Risks. 3  Consumer Compliance Risk-Management Program. 4  Board and Senior Management Oversight. 5  Policies, Procedures, and Limits. 6  Risk-Monitoring and Management Information Systems. 7  Internal Controls. 8  Main Page for Topic Index.
Work Insurance. Some companies offer disability insurance as a fringe benefit. If your employer paid for your disability insurance, your payments will be taxed as earned income. Since your employer paid for the policy, it's like your payments are an additional form of compensation for your work. If you paid for part of your work insurance, then part of your payments will be tax-free.
Social Security disability benefits (SSDI) can be subject to tax, but most people do not end up paying taxes on them because they don't have much other income. About a third of Social Security disability recipients, however, do pay some taxes, because of their spouse's income or other household income.eep in mind that if your disability benefits are subject to taxation, they will be taxed at your marginal income tax rate. In other words, your taxes would not be 50% or 85% of your benefits; they would probably be 10-15% of your benefits.