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.
1. If you are single and your modified adjusted gross income (MAGI) plus half of your Social Security benefits is more than $25,000 but less than $34,000, then up to half of your disability benefits will be taxable. If your income is above $34,000, then up to 85 percent of your Social Security may be taxed. 2.